the e-myth enterprise
TRANSCRIPT
TheE-MythEnterprise
HowtoTurnaGreatIdeaintoaThrivingBusiness
MichaelE.Gerber
TotheDreamerswhobravelytakeaction.
Abusinesswithconscience.Thatis,Ibelieve,theonlymissionworthyofthename.Tocreateaworldinwhichpeoplearepresent,honest,open,andalive.Tocreateaworldinwhichpeoplemakeconsciousdecisionsingood
conscience.Thatiswhatshootingforthemoonisallabout.Andonecannotdoitinone’ssleep.Itrequiresallwehave.Anditrequiresnow.
—KenBlanchard,coauthorofTheOneMinuteManager®andTheOneMinuteEntrepreneur™andcofounderandChiefSpiritualOfficerofTheKenBlanchardCompanies
Contents
Epigraph
ForewordbyKenBlanchard
PrefaceHowPigandBearWentintoBusiness
Introduction
OneTheE-MythEnterpriseandthePositionofOne:ABusinessExistsOnlyasItIsPerceivedbyOthers
TwoTheE-MythEntrepreneurandtheFiveEssentialSkills
ThreeTheE-MythEnterpriseMatrix:TheFourCategoriesofPreference
FourTheFirstCategoryofPreference:TheVisualIdeal
FiveTheSecondCategoryofPreference:TheEmotionalIdeal
SixTheThirdCategoryofPreference:TheFunctionalIdeal
SevenTheFourthCategoryofPreference:TheFinancialIdeal
EightTheE-MythPerspective
NineShootingfortheMoon
ToBuildYourE-MythEnterprise
SearchableTerms
Acknowledgments
AbouttheAuthor
OtherBooksbyMichaelE.Gerber
Copyright
AboutthePublisher
FOREWORD
IlovetoreadMichaelGerber’sbooks.Hisattitudeischallenging,hisstyleisplayful,andhiscontentisinsightful.Hisearlygems—TheE-Myth,E-MythMastery,TheE-MythRevisited,andAwakeningtheEntrepreneurWithin—wereprettydarngood,tosaytheleast.ButTheE-MythEnterprisemightbehisbestbookyet.ListentowhatMichaelhastosayinhisintroduction:
TrustmewhenIsaythis:TheE-MythEnterprisesyouwillcomeintouchwithhereareasuncommonarealityaswinningtheOlympics….Companieslikethesedon’tjusthappen;Theyaretheoutcomeofpassionsintenselyapplied.Ofperseveranceimpossibletofake.Ofovercomingtherelentlessobstaclesthatarecontinuallyconspiringtomaketheimpossible,impossible.Tomaketheunfathomable,unfathomable.Tomakethedifficultmorethanjustdifficult,buthorrendouslydifficult.Ofcreatinganoriginalresultintheworld….Inshort,afreemarketsystemprovidesonewithsignificantlymoreopportunitytofailthanitdoestosucceed.
How’sthatforchallenging?Hepointsoutlaterinthebook:
Serviceisanincompletewordbecauseitsays,“Thecustomerisking.”Butasitworksoutinreallife,thecustomerisn’tkingexceptinthemindofthecustomer.Totheemployees,thecustomerisn’tking;he’softenapainintheass.Tosuppliers,thecustomerisn’tqueen;she’softenaproblemwaitingtohappen.Tothelenders,thecustomerisn’tking;he’softenadrunkhangingontoawagon,caromingintoawall.No,thecustomerisn’tkingtothem—theyare!
How’sthatforplayful?Throughoutthebook,Michaelgetstotheheartofwhatmakesbusinessestick:
Therearethreethingsthatcanbeorganized:time,space,andwork.Despitewhatmanybelieve—andwhatmosttrytodo—peoplecannotbeorganized.Onlytheworkpeopledocanbeorganized.Allattemptstoorganizepeopleinsteadoftheirworkdoexactlytheoppositeofwhatorganizationisintendedtodo.Ratherthanorder,itcreateschaos.Ratherthanease,itcreatesdis-ease.Ratherthanefficiency,itcreatesboredom.Ratherthanflexibility,itcreatesbureaucracy.Ratherthanroom,itcreatesconfinement…Whenemployedwithskill,organizationalwaysproducesasenseofgreatease.Whenemployedunwisely,organizationalwaysproducesresistance.Ihaveneverseenagreatbusinessthatdoesthingsinabusinesslikeway.
How’sthatforinsightful?IsTheE-MythEnterprisejustforpeoplethinkingaboutstartingabusiness?
No,butitsurewouldhelp.IreadthisbookonaplanefromDallastoSanDiego.Afterfinishingapage,Iwouldhandittomywife,Margie,whocofoundedourcompanywithmeandwhohas,bytheway,aPhDincommunication.Shekeptsayingassheread,“Howdowegeteveryoneinourcompanytoreadthisbook?”We’recelebratingthethirtiethanniversaryofourcompanythisyearandMargieisworriedthatwehavewhatiscalled“educationalincapacity.”Oursuccess—andwehavebeensuccessful—makesusblindtonewlearningsandwaysofthinking.Andboy,isTheE-MythEnterpriseallaboutthat.
Soreadthisbook.Shareitwithyourcolleagues.And,asMichaelGerberchallengesus,“Stopsleeping!Wakeup!”Heedthefinalthoughtsinthiswonderfulbookbythisbrilliant,passionateman,MichaelGerber,whoIamproudtocallanewfriend.
PREFACE
HOWPIGANDBEARWENTINTOBUSINESS
PigandBeardecidedtogointobusiness.“We’llmakelotsofmoney!”theythought.Pigbakedabushelofpotatoes,andBearfriedaheapofdoughnuts.Theywenttothemarketplaceearlyinthemorningtogetthebestspots.
Nobodywasaroundyet.Themorningwasclearandchilly.Bearhadanickelinhiscoat.AfterawhilehewentovertoPig’sstandtowarmupalittle.
“Howmuchforapotato?”hegrowled.“Anickelforyou.”Bearwasabouttosaythathe’djustwantedtoask,butthenhechangedhis
mind.Hefishedforthenickelinhisfur,tookthebiggeststeamingpotatoinhispaws,andcrossedtheroadbacktohisstand.
Thebusinessismoving,rejoicedPig.Butsincetherewerenomorecustomersforawhile,andhehadn’teatensincetheystartedatdawn,hecrossedovertoBear’sstandandboughthimselfablackraspberrydoughnutforanickel.
Bearwashappytohavehisfirstcustomer.Hefeltheshouldeatsomethingbeforetheystartedtoflock.Hewentovertobuyanotherbakedpotato.Themovebroughthimluck.HehadhardlyfinishedwhenPigwasoverforanotherdoughnut.
ThebusinessslackedoffagainuntilBearboughtapotato.SoonPigwasoveragain,andBearwentrightbacktohisstandwithhimtospendtheearnednickel.Pigreturnedforadoughnut,andsoontheyweregoingbackandforthuntiltheysoldeverything.
Theycountedthemoney,but:“Howstrange,Ionlyhaveanickel,”Bearsaid.“AndIhavenothingatall,”saidPig.Theycouldn’tbelieveit.“Wehavesoldallourmerchandise,”theykeptsaying,“butwehaveno
money!”
Butinvaintheycountedandrecounted:theyhadonlyanickelbetweenthemafterthewholedayofbusytrading.
—AdaptedfromTwelveIronSandalsbyVitHor?ejš
INTRODUCTION
Ifyou’vereadanyofmyE-Mythbooks,youknowmewellenoughtoanticipatewhatI’mabouttosharewithyou.Ifyouhaven’treadmyE-Mythbooks,thisbookwillcomeasasurprise.
TheE-MythEnterpriseisabookaboutthebusinessofinvention.Moreimportantly,it’sabookaboutrarepeoplewhoIhavecometothinkofastrueE-MythEntrepreneurs,peoplewhoweremovedtore-createtheirworldbyinventingabusinessunlikeanytheyhadeverseenotherthanintheirimagination.
Unlikeanybusinessyouhaveeverseen.TrustmewhenIsaythis:theE-MythEnterprisesyouwillcomeintouch
withhereareasuncommonarealityaswinningtheOlympics.Companieslikethesedon’tsimplyhappen;theyaretheproductofdeep,
deliriousimagining.Theyaretheoutcomeofpassionsintenselyapplied.Ofperseveranceimpossibletofake.Ofovercomingtherelentlessobstaclesthatarecontinuallyconspiringtomaketheimpossibleimpossible.Tomaketheunfathomableunfathomable.Tomakethedifficultmorethanjustdifficult,buthorrendouslydifficult.Ofcreatinganoriginalresultintheworld.
IthinkyougetwhatImean.Don’ttrythisathome,iswhatthewarningreadsatthebottomofthepage.Unlessyou’redeterminedtoexceed,thatis.
Toexceedwhat?isthequestion.Well,ofcourse:toexceedtheeveryday.Thenormal.Theobvious.Andifthat’sthecase,thisbooktellsyouwhatitlookslikewhenyou’re
doneandhowtothinkaboutitintheprocess.HowtoinventanE-MythEnterprise.Howtoinventacompanythatactslikeoneintenmillion.Welcometotheclub.TheE-MythClub.TheMichaelGerberClub.Theclub
ofgreatentrepreneurs.
THEFOURESSENTIALINGREDIENTS
Iwashavingaconversationwithmyfriendandagent,SteveHanselman,notthatlongago,aboutmycommitmenttocreateanewmaster’sdegree,onethatwould
longago,aboutmycommitmenttocreateanewmaster’sdegree,onethatwouldleaveanMBAandallthosewhowouldpursueitsmotheredinthedust.
IcalledthatnewdegreeanMBD,ormaster’sofbusinessdesign.Itwouldbetheonlybusinessprogramanentrepreneuroranentrepreneurial
managerwouldeverneed.Itwouldteachtheessentialskillsneededtoinventastunninglyoriginalcompany,whatIinthisbookcallanE-MythEnterprise.
Therearefouressentialingredientstobuildingsuchacompany:theyarethevisual,emotional,functional,andfinancial.Whenyoudesignacompany,youdesignitvisually,emotionally,functionally,andfinancially.Thesefouressentialcomponentscallforasystemsthinkeriftheyaretobedesignedtoworkasallgreatcompanieswork:synergistically,inanintegrated,intelligent,original,emotionallycompellingwaytodelivertheoriginalpromisetheyweredesignedtodeliver,aresultthatsurprisesthepeopleitwasintendedtosurprise,thatgluesthemtoitinwaystheyhadneverexpectedbecauseitservestheminwaystheyhadneverexpected.Anditkeepsondoingitbecauseitwasbuiltinaveryspecialway.
InthisbookIwilldiscussthebeginningsofthatMBD,atleasttothepointwhereyouwillclearlyunderstandthelogicunderlyingitandwhyitissocriticalforyoushouldyouaspiretobecomesuchaninventor,suchanE-MythEntrepreneur,asthefolksinthisbookhavebecome.
Theideaisnotthatdifficulttograsp.Acompanyisaproductofanentrepreneur’simagination.Itisavisualproduct,anemotionalproduct,afunctionalproduct,andafinancialproduct.
Althoughtheideaisnotthatdifficult,itseemsthatmostpeopleItellthattodofinditdifficultand,formany,impossibletoget.Ibelievethattobecausedbythegross,commercial,flat,unstimulating,unimaginativecontextmostofusholdontowhenrelatingtothesubjectofbusiness.
Business,tomostpeople,iswhattheirparentsdidordo.Business,tomostpeople,isthejobthey’vegottogototoday.Business,tomostpeople,iswherewework.Business,tomostpeople,iswherewewouldleastliketobeifwhatwe
reallywantedtobedoingishavingfun.Thisbooksuggestssomethingsignificantlydifferentthanthat.Businessisthemostcreativeandchallengingpursuitinwhichonecan
engage.Itisalsodownrightfun—ifdoneright.Followme.Let’sdoitright!Let’shavefun!
—MichaelGerber
CHAPTERONE
THEE-MYTHENTERPRISEANDTHEPOSITIONOFONE:ABUSINESSEXISTSONLYASITISPERCEIVEDBYOTHERS
Intoomanysituationsweautomaticallyexperiencepeopleas“them”—not“us.”Thesejungle-typehabitsofmindare
dangeroustoourspecies.
—KenKeyesJr.
Thisbookismeanttobeaprescriptionforbuildingasuccessfulbusinessinafreemarketsystem.Asyouwillfindout,itprobablyservesaswell—ifnotbetter—asapolemicagainstsuchprescriptions.
Pleaseexcusetheapparentcontradiction.Iknowthatifyou’repatient,somewhereinthemiddleresidesatruthworthdiggingfor.Buttogetthere,you’regoingtohavetodosomeofthework.You’regoingtohavetostretchwhereIstretchandletgowhereIletgo.
Inotherwords,you’regoingtohavetobewillingtoplayanalwaysfrustrating,butsometimesenlightening,game,agameIcallhowdoyouprovideananswertoaquestionthatyouknowhasnoanswer?
Inafreemarketsystem,that’sthegamecalledbusiness.Toanyonewithevenapassinginterestinthecomingsandgoingsofthefree
marketsystemintheUnitedStates,itshouldbeapparentthatthelifeofabusinesshereisaprecariousthing.Ifthebusinessisagoodidea—thatis,ifitdoesalltherightthingsintherightwayandattherighttime,andislucky—itsucceeds.
Ifit’sabadidea,itdoesn’t.Evenworse,itcouldappeartobeagoodidea,butshifts—morelike
earthquakes—intheeconomycansinkit.Wasn’tWashingtonMutualagoodidea?Wasn’tFannieMae?Wasn’tLehmanBrothers?Wasn’tAIG?
idea?Wasn’tFannieMae?Wasn’tLehmanBrothers?Wasn’tAIG?Unfortunately,thetruthisthatforthepeoplewhoinvestinotherpeople’s
businesses,forthosewhostartabusinessoftheirown,orforthosewhoworkforeitheroftheothertwo,mostbusinessesturnouttobebadideas;mostbusinessesfail.Eventheso-calledgiants.
Morefrustratingisthat,inafreemarketsystem,eventhegoodideas—thebusinessesthatsucceed—turnintothebadideasintime.
Theweatherchanges.Anewcompanymovesinacrossthestreet.Peoplestophavingbabies.Somebodycomesupwithabetteridea.Theeconomyexperiencesaso-calledcorrection.Or—andthishappens—someonecomesupwithaworseideabutimplementsitbetter.
Inshort,afreemarketsystemprovidesallofuswithsignificantlymoreopportunitytofailthantosucceed.
Whatworkedyesterdaywillmostlikelynotworktoday,andthefactthatsomethingworkstodayisinsufficientjustificationforplanningtodoitthesamewaytomorrow.
Howcanweminimizetherisk?Ifanestimatedsixoutoftencompaniesfundedbyprofessionalventure
capitalistsgounder(someestimatesrunashighas90percent*),howcananyoneelseexpecttodobetter?Shouldn’twebeabletoexpectbetterinaworldwithsomuchinformationathand,withsomuchtechnicalandtechnologicalknow-howatourdisposal,andwithsomanywell-trainedmanagersavailable?*
Foryears,clientshavebeenaskingmethoseveryquestions.Isthereacommondenominatorwecanusetotakeamoreaccuratemeasure
ofabusinessidea?Isthereapattern—atemplate—wecanusetoevaluateabusinessandits
likelihoodofachievingsignificantsuccess?Istheresomethingallgreatbusinessesdothatcanbereplicatedbyother
businesseswishingtobecomegreat?Isthereawaytoclonegreatness?Ibelievetheanswertoeachofthesequestionsisyes.Thisbookismyanswertothosethousandsofclientsandbusinesspeople
whohaveaskedmethesequestionsovertheyears,aswellastothemillionsofentrepreneurs,would-beentrepreneurs,andmanagersIhavenevermettowhomthesequestionsarejustasimportant.
Inadeceptivelythinbook,IhaveorganizedthefundamentalprinciplesthatIbelieveformthefoundationofeverylastinggreatbusinessintoatemplateormodelofgreatness,thepresenceofwhichinanybusinesswouldindicatewithagreatdegreeofcertaintywhatIcallthesuccess-pronenessofthatbusiness,and
theabsenceofwhichwouldindicatethatabusinessisnotlikelytopassthetestoftime.
Thevalueofthistemplateisthatitistimeless.Itwillworkforanyenterprise,anytime,atanyplaceintheworld.
Ittranscendsepochs,technology,industry,markets,economies,andgeography.
Itcouldhavebeenimplementedaseffectivelyinthenineteenthcenturyasitisnow.
ItcouldbeputtogoodworkjustaseffectivelyintheemergingEasternEuropeanfreemarketexperiment,asitcouldintheUnitedStatesfreemarket’sattempttorecaptureitsownlostglory.
ItcouldjustaswellbeappliedtoacornergrocerystoreastoasemiconductorplantinChandler,Arizona,oraniPodfactoryinChina.
Thereasonitissotimelessandsotransferableisbecauseitisfoundedupontheonesacrosanctrequirementuponwhichtheexistenceofeverybusinessinafreemarketsystemalwayshasdepended,andalwayswilldepend.
Thatis,tosucceed,everybusinessinafreemarketsystemmustlearnhowtosatisfy,betterthanitscompetitors,theessentialneeds,unconsciousexpectations,andperceivedpreferencesofthefourmostimportantgroupsofpeopleinitsuniverse:(1)thepeoplewhoworkforit;(2)thepeoplewhobuyfromit;(3)thepeoplewhoselltoit;and(4)thepeoplewholendtoit:itsemployees,customers,suppliers,andfinancialinstitutions.
Itisthecombinedjudgmentofallthesepeople,thesefourprimaryinfluencers,uponwhichtheultimatesuccessorfailure—yes,thelifeordeath—ofeverybusinessenterpriseultimatelydepends.
Whichbringsustoourfirstruleofthumb.Andthatis,inafreemarketsystem…
BusinessesExistOnlyBecausePeopleWantThemTo.
Ihopethatstatementdoesn’tcomeasabigsurprisetoyou.Itsurprisesmethatmostbusinessesseemtooperateasthoughexactlythe
oppositeweretrue.Asthoughpeopleexistbecauseofbusinesses.AsthoughGodcreatedbusinessesfirst,andonlywhenthebusinesseswere
seennottoworkdidHecreatepeopletogotoworkinthem,tobuyfromthem,toselltothem,andtolendtothem.
Iknowthat’sadumbthingtosay—Iknowit.
Butit’sanevendumberthingtodo.Yetformanybusinessesit’sstandardoperatingprocedure.
Whichbringsustooursecondruleofthumb.Andthatis,inafreemarketsystem…
PeopleAreRegardedasaProblemtoMostBusinesses.
Yes,tomostbusinessesinafreemarketsystem,peopleareregardedasaproblem—notonlythepeoplewhoworkinthebusiness,butthepeoplewhoselltothebusiness,thepeoplewhobuyfromthebusiness,andthepeoplewholendtothebusiness.Allpeopleareregardedasaproblem.Andthey’reaproblembecausethey’resounmanageable.Whenpeoplearemanageable,they’renotaproblemanymore.They’reinvisible.
That’swhatmostbusinessesIhaveseenwouldlikepeopletobe.Invisible.Notaproblem.Notneedingattention.Pliable.Easy.
That’swhytherearesystemsintheworldotherthanthefreemarketsystem.Othersystemswerecreatedtoeliminatetheproblemofpeople.Inother
systems,peoplearen’taproblembecauseitdoesn’tmatterwhattheywant.Inafreemarketsystem,youcan’tgetawaywiththatmind-setforverylong,
andthat’swhatdriveseverybodynutstryingtorunabusinessinthissystem.Inafreemarketsystem,wehavetocometogripswiththefactthatthereare
allthesepeople—needing,needing,needing.Unfortunately,inafreemarketsystem,allofthemareneedingthesame
damnthing—MORE!
Moreofwhat?Moreofeverything!Butdon’tpeopleknowthatthere’sonlysomuchabusinesscangive?Whyaren’ttheyunderstanding,likeus?Likewho?
Likebusinesspeople.Likethepeoplewhorunthebusiness.Likethepeoplehereinthebusinessatthetop.Likethepeoplewhoownthebusiness.Likethepeoplewhomanagethebusiness.Likethepeoplewhowouldlikeotherpeopletobemorereasonable.Likethepeopleverymuchlikeus,whowant…what?
Likethepeopleverymuchlikeus,whowant…what?
WhowantMORE.Whowantmoreofwhat?Ofeverything!Butabusinesscanonlygivesomuch!Whosaid?
Inafreemarketsystem,businessesareinventedbypeopleforaveryspecialreason.
Butdespitewhatmostofusbelieve,businessesarenotinventedonlybythosepeoplewhogointobusiness—theso-calledentrepreneursamongus.
Inafreemarketsystem,businessesareinventedbyallofus—byeachandeveryoneofus.Thereasonweinventbusinessesinafreemarketsystem,likeoursintheUnitedStates,istodoonething—andonlyonething:tocreateMORE.BusinessesinafreemarketsystemaretheinstrumentsthroughwhichpeoplegetMORE.
Inallothersystems,businessesaretheinstrumentthroughwhichmostpeoplehopefullygetenough(butrarelydo),whilesomepeople—someveryfewpeople—gettheMOREthateveryoneelseisn’tgetting.
Butinthefreemarketsystem,everyoneissupposedtogetMORE.Theproblemwiththefreemarketsystemisthatwheneveryonedoesn’tget
theMOREthattheywant,then“shithappens”(asthecrudebumperstickerstates).
Andthat’sthepartofthefreemarketsystemcalledbusiness,whichveryfewpeopleinbusinessseemtofullyunderstand.
Abusinessinthefreemarketsystemisonlyjustifiableinthemindsofpeople—isonlytoleratedinthemindsofpeople,isonlypermittedtoexistinthemindsofpeople—ifthebusinesslearnshowtogivethemMORE.
Abusinessisintendedtobeaperpetualmotionmachine,theonlypurposeofwhichistofindwaystogivepeopleMORE.
AbusinessisamechanismdesignedtoproduceMOREforthecontinuallyrisingexpectationsofpeopleinafreemarketsystem.
Andinafreemarketsystem,theminuteabusinessforgetsthesethings,theminuteabusinessstopsprovidingMORE,theminuteabusinessbeginstoignoreitssolepurposeforbeinginafreemarketsystem—itsraisond’être—itceasesplayingthegamecalledbusiness.
Itbeginstoplaythegamecalledgood-bye.Whichbringsustoourthirdruleofthumb.Andthatis,inafreemarketsystem…
ServiceIsanIncompleteWord.
Ifeveryoneunderstoodthat,inafreemarketsystemsuchaswehaveintheUnitedStates,thegamecalledbusinessisallaboutcreatingMOREforeveryone,wewouldimmediatelyunderstandwhyserviceisanincompleteword:itdoesn’tincludeenough.
Itdoesn’tincludetheemployees.Itdoesn’tincludethesuppliers.Itdoesn’tincludethelenders.Itonlyincludesthecustomers.
Serviceisanincompletewordbecauseitsays,“Thecustomerisking!”Butasitworksoutinreallife,thecustomerisn’tkingexceptinthemindof
thecustomer.
Totheemployees,thecustomerisn’tking;he’softenapainintheass.Tothesuppliers,thecustomerisn’tqueen;she’softenaproblemwaiting
tohappen.Tothelenders,thecustomerisn’tking;he’softenadrunkhangingonto
awagoncareeningintoawall.
No,thecustomerisn’tkingtothem—theyare!“Ifthecustomerisking,”theyallaskprivately,deepinthehiddenrecesses
oftheirlonginghearts,“whataboutme?”That’swhateverybodyelseisaskingtoo:“Whataboutme?”That’swhathappenswhenwedon’tunderstandthegameofbusinessasit’s
meanttobeplayedinafreemarketsystem.Peoplestartaskingthemostobviousquestions.
Itshouldbeobviousthat,byitself,astrongfocusonthecustomerisinsufficienttocreateasuccessfulbusiness.Therecanbenosuchthingaseffectivecustomerserviceinacompanywheretheemployeesaredisenchanted,wheretheownersaren’tmakingadecentprofit,wherethesuppliersaren’tgettingpaidontime.
Inshort,astrongfocusoncustomerservicenotonlyisinsufficienttoproducelastingresultsinacompany,but,initself,makeslastingresultsimpossibletoachieve.
Whichbringsustoourfourthruleofthumb.
Whichbringsustoourfourthruleofthumb.Andthatis,inafreemarketsystem…
ThereAren’tAnyGoodAnswersforLong.
If,aswe’vealreadyagreed,thepurposeofabusinessistoserveasaninstrumentthroughwhichpeopleinafreemarketsystemgetwhattheywant—andwhattheyalwayswantisMORE—thenitissafetoassumethatanybusinessthatcomesupwithMOREisservingitspurposewell,andthereforesurvives.AnybusinessthatfailstocomeupwithMOREisnotservingitspurposeatall,andthereforedies.
Thisleadsustotheunavoidableconclusionthateverytimeabusinesscomesupwithananswer,thatanswerbearswithinittheseedsofitsowndemise.
Everyanswerinasuccessfulbusinessisonlyatemporarysolutionreachedonthenever-endingpathtowardthesearchforMORE.
WhichmeansthatforbusinessesoperatingintheLandofMORE,therearen’tanyanswers,onlyquestions.Andthequestionsallleadinthesamedirection—thedirectionthateverysensible,aware,responsive,dynamicchiefexecutiveofficerknowsastheonlywaytoMORE.
Thisisthewayeverysuccessfulbusinessoperatinginafreemarketsystemfromtimeimmemorialhasfollowed:thesearchfortheineffable,theindefinable,theunknowable,theindisputably,irrefutably,pragmatically,unavoidablyaggravatingHolyGrailofMORE.
Theonlyjustificationnecessaryis“Ifwedon’t,theywill.Andiftheyfinditfirst,ourassisgrass.”
Whichleadsustoourfifthruleofthumb.Andthatis,inafreemarketsystem…
YouAreEithertheLawnMowerortheLawn.
Whichiswherewebeganthislittlemoralistictale—thatinafreemarketsystem,businessisaprecariousthing;yourverysurvivalisatstake.
AndintheLandofMORE,aswe’vealreadylearned,ifyoudon’tsurvive,it’sbecauseyoudidn’tdeserveto.
Youweren’tpayingattention.SomebodyopenedthegateandrolledintheJohnDeerewhileyou
weren’tlooking.
weren’tlooking.Suddenly,yourrolewasdefinedforyou:yourasswasgrass.
Thisisthesamewaytheroleisdefinedformostbusinesses,everysingledayoftheyear:becausetheyaren’tplayingthegamecalledbusiness;they’replayingthegamecalledgood-bye.
What’ssadisthattheyrefusetoacceptthatthere’sadifferencebetweenthetwogames.
Yes,it’ssadandit’struethatmostbusinesses,largeandsmall,arelivingbyrulesofthumbthataren’trulesatall,butthecoveroftheboxthey’velaiddownin.
Theyhavestoppedaskingquestionsandhavecomeupwithanunsuitable(thatis,self-serving)answer.
Aclosefriendofminewroteabookaboutthemeaningofmoney.Heobservedthatfewofusreallyunderstandwhatmoneyis;wesimplyuseit.Hefeelsstronglythatwe’repayingabigpriceforourignorance.
Ifeelthesamewayaboutbusiness.Likemoney,businesstoucheseachandeveryoneofusateveryturn—our
food,ourclothes,ourentertainment,ourrecreation,ourhealth—ourverylife.Everychoicewemakeisimpactedbybusinessinsomeform,creatingsomeserviceorproductuponwhichwedepend,orhavegrowntodepend,ifnotforourverysurvival,atleastforthesurvivalofthelifestylewehavegrowntoenjoy.
Everyday,allaroundus,businessesarebeingborn,living,struggling,anddying.Eachofthem,likeeachofus,isauniquebeingwithauniqueidentityandauniqueplaceintheworld.Allofthecharacteristicsfoundineachofus—activeorpassive,creativeordull,passionateorstingy,growingorwithdrawn—canbefoundinabusiness.
Yet,justaswithmoney,fewofusunderstandwhatthisthingcalledbusinessreallyis.Wegotoworkinthem,buyfromthem,andhaveopinionsaboutthem.Butwedon’tunderstandthem.
Tomostpeople,businessiswhatgoesonarounduswhilewegetonwithourlives,somethingbeingdone“outthere”—atmostacommercialenterprise,aplacetomakemoney,aplacetogotowork,aplacetobuythings,oraplacethatmakesthingswebuy.
Fewpeopleseemtounderstandthatbusinessismuchmorethantheseindividualfactors.
Inafreemarketsystem,businessisn’twhatgoesonarounduswhilewegetonwithourlives.Businessisourlives.
Businessiswhatwedo,allwedo,whoweare.Inafreemarketsystem,businessistheorganizedexpressionofourgrowing
self-interestmanifestingitselfthebestwayitknowshow.Businessisalivingthing.Lookatourbusinesses,andyou’llknowwhoweare.Inafreemarketsystem,everyoneistouchedbytheallureofbusiness.You
can’tgetawayfromit.
Writerstalkaboutthebusinessofwritingbooks.Artiststalkaboutthebusinessofcreatingart.Intellectualstalkaboutthebusinessofcommunicatingideas.Spiritualiststalkaboutthebusinessofraisingourspiritualawareness.Meditatorstalkaboutthebusinessofteachingushowtosit.Chiropractorstalkaboutthebusinessofteachingushowtostand.Preachersareinthereligionbusiness.Musiciansareinthemusicbusiness.Pediatriciansareinthebabybusiness.Cardiologistsareintheheartbusiness.
Wehavetakentheworldapartandputitbacktogetheragainasabusiness.
Thebusinessofgovernment.Thebusinessofeducation.Thebusinessofhealth.Thebusinessofart.
Welivetheillusionthatweunderstandwhatbusinessis,wheninfactwedon’t.
Despitewhatmostpeoplethink,businessisn’tdoingorcreatingsomethingtobesold.
Businessisalivingthingthatfeedsandgrowsontheexpectations,perceptions,needs,fears,andgreedofthepeoplewithwhomitcomesintocontact.
Businessisaproductofeverythingwebelievetobetrue,needtobetrue,wanttobetrue.
Ourbusinessesareus,andweareourbusinesses.Whichbringsustothepointathand:theE-MythEnterpriseandthePosition
ofOne.
ofOne.Thatis,abusiness,anybusiness,cansucceedonlytothedegreethatitgives
eachandeveryoneofitsfourprimaryinfluencersMOREthantheycanexpectfromanyoneofitscompetitors.
Thewayinwhichabusinessaccomplishesthisobjectiveiswhatwewouldcallagoodidea.
Anideathatwillattractcustomerstoit.Anideathatwillattractemployeestoit.Anideathatwillattractsupplierstoit.Anideathatwillattractlenderstoit.
Itisanideathatattracts,withthegreatestofforce,theinterestandattentionofthefourprimaryinfluencers,andactswiththesameforcewithwhichitattracts.
Theforceofanyideaoriginatesintheessentialneeds,perceivedpreferences,andunconsciousexpectationsofthepeopleitisintendedtoserve;anideahasnoforceofitsown.
Thoughtofinthatway,agoodideaforabusinessisonethatservesthemostpeoplebest.Abadideaforabusinessisonethatservesthemostpeopleleast.
ThePositionofOneisthatlocusofenergy—thatfusionofattention—createdwhenagoodideaattractstoitselftheself-interestsofcustomers,employees,suppliers,andlendersalikewithanequal,active,intenselyinterestedforce,whichthenmovesoutintotheworldtoattractmoreforce,which,inturn,movesoutintotheworldtoattractevenmoreforce,thusgrowingandexpandingandexplodingwithapowerunrivaledbyitscompetitors.
Likeastar.Likethesun.Liketheeyeofastorm.That’sthepowerofthePositionofOne.
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
(ListentothePodcastversionatMichaelEGerber.com)
Mybriefsummarieswillendeverychapterandincludetheessentialideasthatyouneedtopostonyourwall,burnintoyourbrain,thinkaboutduringyourcommute,andremembereveryday—asyoubuildyourE-MythEnterprise.GotoMichaelEGerber.comformyPodcast—andnewinformationthatwillimpactyourenterpriseinevengreaterways.
Businessesexistonlybecausepeoplewantthemto.Wewantbusinessestoserveourneeds.Fulfillourdesires.Makeourlivesbetter.More,more,more!Whentheyfailtodothat—ornolongersucceedastheyoncedid—dowestillwantthemtoexist?Howwillyourcustomersfeelaboutyourbusinessnextyear?Infiveyears?Intenyears?Peopleareregardedasaproblemtomostbusinesses.Theshake-upsinthefinancialsectorclearlyillustratethefailureofleaders,systems,andconsumerprotections.Weallrecognizethatwewant—andneed—banksandinvestmentfirms.Butwewantthemtofunctionproperly.Tokeepourmoneysafe.Toremainsolvent.Tobemanagedandstaffedbypeoplewhoplaceourinterestsfirst.E-MythEnterprisesreduceandresolveproblems,refinethe“peopleselectionprocess.”Serviceisanincompleteword.Thecustomercannotbekingifmanagementisking.Thecustomercannotbekingifemployeesareking.InanE-MythEnterprise,owners,managers,employees,suppliers,andlendersmustcomeintoalignmentandcrownthecustomer.Servicethenbecomesacompleteword.Therearen’tanygoodanswersforlong.CustomerswantMore,More,More.Obviously,youcan’tofferLess,Less,Less.ChangingneedsandwantsMUSTchangethewayyoudobusiness.TheE-MythEnterpriseandthePositionofOne.AnybusinesscansucceedonlyifitgivesitsfourprimaryinfluencersMOREthantheycanexpectfromacompetitor.Thisisaccomplishedthroughagoodideathatwillattractcustomers,employees,
suppliers,andlenderstoit.
CHAPTERTWO
THEE-MYTHENTREPRENEURANDTHEFIVEESSENTIALSKILLS
Therealunknownisanemotionalunknown….Weawakentodarkness.
—JacobNeedleman
Ifagoodideaforabusinessisonethatservesthemostpeoplebest,thenweintheUnitedStateshavesomesoulsearchingtodo,becausethere’ssomethingmissinginmostofourbusinesses.Andthatsomethingismeaning.
Forourfailuretounderstandthetruerolebusinesshascometoplayinourlives,forourfailuretotrulylistentothepeoplewecomeintocontactwith,forourbiastowardservingourownspecialinterests,forourraw,insatiabledrivetogetthematerialMOREweallseemtobesayingweneed,itcan’tbedeniedthattoomanyofourbusinesseshavebecomekillingfieldsofthespirit.They,likeus,havemissedthedeepermessage.
Totrulysoar—especiallyiftheeconomyischallenging—abusinessmustmeanmorethanjustmoney,morethanjust“things,”morethanwhat’seasy,morethancareers,inventory,productionstatistics,ROI,automobiles,lipgloss,remodeledkitchens,managementbyobjectives,pensions,profitsharing,“goldenparachutes,”andcurrenttrendsandfashions.
Toachievesomemeasureofgreatness,abusinessmustsomehowriseabovetheone-dimensionalsymbolsandemptyritualsofoureverydayflat-worldexistence.
Totrulyattractthegreatestamountofforceandthegreatestattention—tofullyseizeitspotentialpower—theideabehindabusinessmuststrikemuchdeeper.
Itmuststrikeourimagination.
Itmuststrikeourimagination.Itmusttouchastrong,resonant,andresilientchordintheheartsofall
thosepeopleitisintendedtoserve.Itmustuseitsenergyinaprofound,intelligent,andcompassionateway.Itmustreachbeyondthetrivial,thecourse,theordinary,themundane.Itmustgiveusmorelife.Itmustbecomeapresenceimpossibletoignore.ItmustbecomeaplaceinwhichthemosttransientMORE,themost
predictableMORE,themostsuperficialMORE,themostimmediateMORE,themosttrivialMOREisneverenough.
Itmustbecomeheroicineverythingitdoes.Itmusttouchthedyingpartofeachandeveryoneofusandraiseusto
somehigherplace.
Fiveessentialskillsareneededattheoutsettocreateagreatbusiness.Isayattheoutset,fortheseskillsmustbeinplaceiftheideaforthebusinessistopossessthesize,thescale,themagnitude,theecstaticquality—thepower—neededtoentertherace.
Tosomedegree,everygreatbusinesspossessestheseskills.Iwouldgosofarastosaythatabusinesswithoutthemisdead.
Thefirstessentialskill—themostfundamentalofall—isconcentration.
Concentrationisthefoundationuponwhichallrightactionintheworlddepends.
Withoutconcentration,abusinesswillhavenopresence,noinnerforce,nomagneticcentertowhichpeople,uponwhomitdependsforitslife,energy,andforce,willbeattracted.Withoutconcentration,thereisnoabilitytolisten,torespond,tobeavailable.
Concentrationisnotonlysomethingagreatbusinessmustdo,itisalsotheresultofsuchdoing.Asabusinessconcentratesitsattention,italsobecomesconcentrated—theconvergentpointtowhichenergyisdrawn.
Thet’aichimasterT’anMeng-hsien,inhisSongofCentralEquilibrium,says:
Wearecentered,stableandstillasamountain
Ourch’isinkstothetan-t’ienandweareasifsuspendedfromabove.Ourspiritisconcentratedwithinandouroutwardmannerperfectlycomposed.Receivingandissuingenergyareboththeworkofaninstant.
Saidanotherway,agreatbusinessownsaplaceintheworld.
Itstandssquarelyinthatplacebutisabletomoveinaninstant.Itsenergy,itsch’i,flowswithoutobstruction.Itisloose,flexible,yetassolidasamountain.Itsfacelookswithinandwithoutintheverysamemoment.Itspoweriscontinuouslyinmotionyet,atthesametime,infinitelystill.Allaredrawntoitastoavision.Itdoesimportantthings.
Intoday’sworld,IthinkofApple.Whilethiscompanyownsonlyasmallshareofthepersonalcomputermarket(themostrecentnumberIheardwas8percent),itstandsinaplaceintheworldthatisindisputable.ItownstheMP3domain,aswellasthemusicdownloadrealm.Otherswantthatmarket.MicrosoftwantstotorpedoApplewiththeZune.ButtheenergyofSteveJobsandhisteamisplantedsolidlyonavisiontodoimportantthings.
Bythetimeyoureadthis,Applecouldbegone.Italmostdisappearedin1993,whenJobswasnotapartofthepicture.ButmyguessisthatApple’senergywillcontinuetoflowwithoutobstruction.ItwillbethecompanyofMORE,offeringmoreinitsiPods,itsiPhones,anditscomputers,allofwhichcontinuetobecuttingedge.That’sthefocus;that’swhereconcentrationmeetsMORE.
Thesecondessentialskillisdiscrimination,theabilitytochooseuponwhat,where,andwhomourattention,ourabilitytoconcentrate,isdirected.
Ifconcentrationprovidesuswiththeattentionandenergyweneed,discriminationprovidesuswiththeintention,thewilltoselectthemostimportantworktodo.
Itisthroughdiscriminationthatabusinessdevelopsstandards,bothstrategically,intheformofamission,andtactically,intheformofbehavior.
Itisthroughthedevelopmentofstandardsthatabusinessdevelopsdiscipline.
Itisthroughthedevelopmentofdisciplinethatabusinessdevelopspatience.
Itisthroughthedevelopmentofpatiencethatabusinessdevelopsvision.
Itisthroughthedevelopmentofvisionthatabusinessdevelopsinsight.Itisthroughthedevelopmentofinsightthatabusinessdevelops
conviction.Itisthroughthedevelopmentofconvictionthatabusinessdevelops
awareness.Itisthroughthedevelopmentofawarenessthatabusinessdevelops
empathy.Itisthroughthedevelopmentofempathythatabusinessdevelops
relationships.Itisthroughthedevelopmentofrelationshipsthatabusinessdevelops
morelife.
Again,Appleprovidesastunningexampleofthisthreadleadingfromdiscriminationtoconviction,toawareness,toempathy,torelationships,tolife.Thisiswhatexplainsthephenomenonof“MacEvangelists,”thosedie-hardloyalistswhowouldstandinlineforhours,ifnotdays,tobuythelatestmodeliPhone,evenifitweremadeoutofrecycledcardboard.Appleunderstandsthatdiscrimination,theabilitytochooseuponwhat,where,andwhomitsattention,itsabilitytoconcentrate,isdirected,ultimatelyleadstorelationships—andthatdevelopsmorelife.
Thethirdessentialskillisorganization,theabilitytoturnchaosintoorder.
Ifconcentrationprovidestheenergyandattentionneededforrightactiontotakeplace,anddiscriminationprovidestheintentionandstandardsneededtoknowwhatactionneedstobetaken,thenorganizationprovidestheroomforrightactiontotakeplace.
Therearethreethingsthatcanbesoorganized:time,space,andwork.
(Despitewhatmanybelieve—andwhatmosttrytodo—peoplecannotbeorganized.Onlytheworkpeopledocanbeorganized.Allattemptstoorganizepeopleinsteadoftheirworkcreateexactlytheoppositeofwhatorganizationisintendedtodo.Ratherthanorder,itcreateschaos.Ratherthanease,itcreatesdis-ease.Ratherthanefficiency,itcreatesboredom.Ratherthanflexibility,itcreatesbureaucracy.Ratherthanroom,itcreatesconfinement.)
Theorganizationoftimepreventstheoverutilizationofenergytoachieveone’sobjectives;justenoughtime—andnomore—withinwhichtherightactioncanbeefficientlyperformed.
Theorganizationofspaceproducestherighttoolsintherightplaceintherightquantitytosupporttherightactionwithaneconomyofeffort.
Theorganizationofworkidentifiesthenaturalwaytotakeaction,therelationshipsbetweenfunctions,andthecoordinationbetweenthetwo.
Whenemployedwithskill,organizationalwaysproducesasenseofgreatease.
Whenemployedunwisely,organizationalwaysproducesresistance.IbelievethatStarbucksisastunning—yetsimple—exampleoforganization
atwork.ThetypicalStarbucks,especiallyinplacessuchasdowntownManhattan,canhave,attimes,longlinesthatstretchoutthedoorsandontothesidewalks.Thiscouldeasilytranslateintochaos.Butitusuallydoesn’t.Timeisorganizedbecausesomeoneisapproachingcustomersattheendofthelineand“walky-talky-ing”theordertothecashier,whorelaysittothebarista.Thespaceandthetoolsareorganizedtoenabletheefficientandtimelydeliveryofdrinks.Andeverythingiscoordinatedbeautifully,fromtheordertaker,tothecashier,tothebarista,tothedeliveryofthedrink.Ofcourse,noteveryStarbucksexperienceisperfect,butit’sclearthattheorganizationoftime,space,andworkisaseriousgoal.
Thefourthessentialskill,innovation,turnsorderintorightaction.
Innovationissometimescalledthe“BestWay”skill;itisalwaysinsearchofperfection.
Whileorganizationisinterestedinefficiency,innovationisconcernedwitheffectiveness—faster,cheaper,smoother,softer.
Innovationiswhatchildrendoallthetime.Likechildren,itisplayful,bright,light,andjoyful.
bright,light,andjoyful.Alsolikechildren,innovationisalmostalwaysirresponsible.Lefttoitsown
devices,itwillalmostalwaysgetitselfintrouble.Itisalwaysimaginingnewpossibilitiesandactingonsuchimagining.Itiswillingtotryanythingonce.Thatiswhywithoutconcentration,discrimination,andorganization,
innovationcouldverywellsinktheship.Ontheotherhand,withoutinnovation,theshipwouldn’tbeverymuchfun.Again,IturntotheexampleofApple.Imaginewalkingintoaretail
technologystorewithyouroff-springintow,andwhileyou’redevisingwaystospendpossiblythousandsofdollarsongadgets,yourkidgetstositdownonkid-sizedchairsinfrontofakid-sizedtablefilledwithkid-friendlycomputerstoplaykid-typegames—whileyoushopforadult-friendlytoys.That’sApple.That’sinnovation.Hands-oninnovation.Notcheaper,butcertainlysmootherandsofter.
Thefifthessentialskilliscommunication.
Itistheskillthroughwhichresultsareproducedintheworld.Shamefully,they’renotalwaysthegood,desirableresultsforwhichwehopeandpray.Sometimesthey’retheopposite.
Butcommunicationtouchesandistouched,reachesoutandisreachedfor,movesandismovedupon,actsandisactedupon.
Communicationisthechannelthroughwhichlifeisconveyed,throughwhichtheenergyoftheideaistransmitted,throughwhichthemindandthebodyandthespiritaremergedandprojectedintoaforceforrightaction.
Itisthemediumthroughwhichattractionsareformed,thendeepen.Itisthebondweeachhavewiththeworld.Allofthegreatleadersinhistoryhavebeengreatcommunicators.Abraham
Lincoln.WinstonChurchill.JohnF.Kennedy.MartinLutherKing,Jr.RonaldReagan.Someyoumayadmire,someyoumaynot.Andthenthere’sAdolfHitler.Notaforceforrightaction.Certainlynotonanyone’slistofmostadmired,butaneffectivecommunicator,nonetheless.He’stheoppositethatImentioned.
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
(ListentothePodcastversionatMichaelEGerber.com)TheE-MythEnterpriseiscreatedandledbyanindividualwhopossessesfiveessentialskills.Havingonlytwo,three,orevenfouroftheseskillswillleadtocertaindisaster.
Thefirstessentialskill—themostfundamentalofall—isconcentration.Withoutconcentration,abusinesswillbeordinaryineveryrespect,becauseitwillhavenopresence,noinnerforce,nowaytoattractthepeopleuponwhomitdependsforitslife,energy,andforce—employees,customers,suppliers,andlenders.Withoutconcentration,thereisnoabilitytolisten,torespond,tobeavailabletothefourprimaryinfluencers.Thesecondessentialskillisdiscrimination,theabilitytochooseuponwhat,where,andwhomourattention,ourabilitytoconcentrate,isdirected.Businessownerswhodonothavetheskillofdiscriminationtendtobelievethateverythingisofequalimportance.Theyoverlookthesignificantinfavoroftheurgent.Thatwhichishappeningaroundthemcapturestheirattention.BobJones,Sr.onceadvised,“Neversacrificethepermanentonthealtaroftheimmediate.”Thethirdessentialskillisorganization,theabilitytoturnchaosintoorder.Therearethreethingsthatcanbesoorganized:time,space,andwork.Theorganizationoftimepreventstheoverutilizationofenergytoachieveone’sobjectives;justenoughtime—andnomore—withinwhichtherightactioncanbeefficientlyperformed.Theorganizationofspaceproducestherighttoolsintherightplaceintherightquantitytosupporttherightactionwithaneconomyofeffort.Theorganizationofworkidentifiesthenaturalwaytotakeaction,therelationshipsbetweenfunctions,andthecoordination
betweenthetwo.Thefourthessentialskill,innovation,turnsorderintorightaction.Innovationissometimescalledthe“BestWay”skill;itisalwaysinsearchofperfection.Whileorganizationisinterestedinefficiency,innovationisconcernedwitheffectiveness—faster,cheaper,smoother,softer.Thefifthessentialskilliscommunication.Itistheskillthroughwhichresultsareproducedintheworld.Communicationtouchesandistouched,reachesoutandisreachedfor,movesandismovedupon,actsandisactedupon.
CHAPTERTHREE
THEE-MYTHENTERPRISEMATRIX:THEFOURCATEGORIESOFPREFERENCE
Theconstituentsofmatterandthebasicphenomenainvolvingthemareallinterconnected,interrelated,andinterdependent….Theycannotbeunderstoodasisolated
entities,butonlyasintegratedpartsofthewhole.
—FritjofCapra,TheTaoofPhysics
Onmysixteenthbirthday,manyyearsago,Iboughtaveryspecialcar.Itwasa1947Fordcoupe.
IthinkofJohnAnderson,themanwhosoldittome,asthequintessentialentrepreneur.
NotthatIthoughtofhimlikethatatthetime.AtthetimeIwasn’tinterestedinbusiness.Iwassimplyasixteen-year-old
boywhowasabouttonegotiatethemostimportantdecisionofhislife,andJohnAndersonwasthemanwhowaseithergoingtomakeitpossibleornot.
Inretrospect,IknowthatJohnAndersonwasabusinessgenius.Whetherbyintentionornot,hedideverylittlethingright.
AfewwordsaboutJohnAnderson.Hewasn’tinbusinessatall,butanengineerworkingatLockheed.IsawhissmallclassifiedadintheAnaheimBulletin,announcingthefact
thathehada1947Fordforsale.Theadsaid,mysteriously:“Onceyouseeit,you’llwonderwhy.”Icalled,scheduledanappointmentforthefollowingdayafterschool,then
proceededtoclimbthewallsfortwenty-fourhoursuntilthetimecametoseethecar.
WhatIhadfailedtotellJohnAndersonoverthephonewasthefactthatIhadthreeseeminglyinsurmountableproblems.
hadthreeseeminglyinsurmountableproblems.One,Ihadn’ttoldmyfolksthatIwasgoingtobuyacar.Two,Ididn’thaveenoughmoneytobuyacar.And,three,Iabsolutelycouldn’tliveforanotherdaywithoutowningmy
owncar!ItwaswiththatknowledgefesteringinsideofmethatInervouslyrangJohn
Anderson’sdoorbellthatThursdayafternoon.JohnAndersonopenedthedoor.Hewasaslim,tall,nondescriptmanwithneatlycroppedblondhairand
brightblue,intelligent-lookingeyes.Hewasinhisearlyforties,althoughhelookedmuchyounger.
Hewaswearingakhakishirt,openatthecollar,andmatchingtrousers.Bothwerestarchedandpressedwithamilitarycrispness.
Hisbrownshoesgleamed.Hesmiledwarmly,shookmyhand,invitedmein,introducedmetohiswife,
whowasshellingpeasatthekitchentable,thenledmeouttothegarage,wherehetoldmehekeptthecar.
Thesmall,white,single-cargaragestoodseparatelyfromthehouse.IfollowedJohnAndersontothegaragedoorandwaitedforwhatseemedlikeaneternitywhileheunlockedalargepadlocksecuredtothedoorhandle.
AsthoughanticipatingthequestionIdidn’thavethenervetoask,hesaid:“Ikeepthedoorlocked,justincase.”
Incaseofwhat,Icouldn’timagine.Untilheopenedthedoor.Standingbeforeuswasthecar,completelyenclosedinatight-fittingcanvas
tarp.Thesoleobjectinthegarage,itsatfrozen—asthoughhovering—inthespacebeforeme.Itwasasurprisepackagewaitingtobeopened,amysterywaitingtoberevealed.
ItwasasifJohnAndersonhadbroughtmetohisgaragetounveilasecrethehadbeenhidingthereforwhoknowshowlong—onehewasabouttosharefortheveryfirsttime,withme,andonlyme,hisunwittingcoconspirator.ItwasalmostmorethanIcouldbear.
“Wouldyouliketohelpmetakethisoff?”heaskedashemovedtothefrontofthecar,touchingthecanvastarplightlywithhishand.
Washekidding?Imumbledsomethingincoherentlike,“Mmhmm,”thenwaitedforthe
instructionsIknewwouldcome.InstinctivelyIknewyoudidn’tsimplygrabatarplikethisanddumpitontheground.
Fortunately,Ididn’thavetowaitlong.“JustdoexactlywhatIdo,”JohnAndersonsaid—asifIwouldhavedared
todoanythingelse.Hemovedtothefrontrightsideofthecar,motionedmetotherearright
Hemovedtothefrontrightsideofthecar,motionedmetotherearrightsideofthecarwithanodofhishead,thenreacheddownandbegantopullthetarpstraightupoverhead.Ididthesame.
Yet,asmuchasIwantedtofollowhislead,Icouldn’thelpbutbedistractedbywhatcameintoview.
Thecarabsolutelyglistened.Firstcamethechromebumper,thenthelightgrayrearfender,thenthe
brightburnishedredofthetaillight.Each,inturn,glistenedwithalusterofitsown.Eachpartaccentuatedtheother,magnifiedtheother,transformedtheother,
enrichedtheother.Itwasloveatfirstsight!Icanseethat’47FordcoupeasclearlyandaswonderfullytodayasIsawit
thatfirsttimeinJohnAnderson’sgarage.Asweliftedthetantarpupandovertheroof,foldingitasheindicated—likeaflag—withloving,deliberateattention,weslowlyrevealedeachpartofthecar:firstthechromebumper,thenthegrayfender,theredtaillight,therearwindow,theroof,thetrunk,thechrometrunkhandle,until,allatonce,theymergedintoawholecar,apresence—ashininggift—betterthanIwouldhavedaredtoimagine,betterthanIpossiblycouldhaveconceivedinmymind’seye.
Aftercompletingthefolding,JohnAndersontookthetarp,openedthetrunkofthecar,laidthefoldedtarpdowninside,softlybutfirmlyclosedthetrunkdoor,thensteppedquietlyaside,wherehestoodwaitingwithoutsayingaword.
IthinkIsaid,“Wow!”butIcan’tbesure.IfIdid,itwastomyself.Thecarheldmeinthrall.
Thewhitewalls,thechromehubcaps,thedeep,darksymmetricaltreadofthetires,thewindows,thechromedoorhandles,thefenders,thedoors,theslow,liltingcurveofthecaritself—allcametogetherintoaluminescentstatementaboutwhatacarcouldmeantoasixteen-year-oldboy.MorethananythingIcouldhavesaid,orJohnAndersoncouldhavesaid,morethananyonecouldhavesaid—thisshimmeringlittleFordcoupe,withitsmeticulouscleanliness,itsdeepsenseoforder,saiditall.
Nothingcouldhavebeenmoretothepoint.Nothingcouldhavetouchedmeanydeeper.ThenJohnAndersonsaid,“Let’sgoforaride.”Therearefourcategoriesofpreferencethateverybusinessmustsatisfyin
themindsandheartsofeachofitsfourprimaryinfluencers.
Visualpreferences,emotionalpreferences,functionalpreferences,and
financialpreferencesmakeupwhatIcalltheE-MythEnterpriseMatrix.
JohnAndersonintuitivelyunderstoodthisidea.
ToJohnAnderson,thesaleofhis1947Fordcoupewasmuchmorethanacommercialtransaction.Indeed,thecaritselfwasmuchmorethanacar.
ToJohnAnderson,his1947Fordcoupewasanidea.Thesaleofhis1947Fordcoupewasthereforeanextensionofthatidea.AndsowasJohnAndersonhimself,andI,and,withoutknowingit,my
parentsandJohnAnderson’swife.Allofuswereanextensionofthatidea,allofusinfluencers,allofusinfluenced,allofuspossessingpreferencesthatneededtobesatisfied—thatwouldbesatisfied—fortheideatobecomeaction,fortheideatomoveintoitsfutureandfinditselfjoinedwiththeworld.Visualpreferences,emotionalpreferences,functionalpreferences,financialpreferences.
TheideaofJohnAnderson’s1947Fordcoupeheldwithinitallofthepossibilitiesthatwouldunfold—possibilitiesthatwerealreadythereattheinstantofitsconception.
Withinthatparticular1947Fordcouperesidedthesixteen-year-oldboyinbothJohnAndersonandme,aswellasallmothers,allfathers,allwives.
Eachofuslovedit,hatedit,neededit,avoidedit,wishedit,dreamedit,createdit,negatedit,defendedit,deniedit,dreadedit—lustedafterit—alongwithourrelationshipswitheachother;ourrelationshipswithourselves;ourideasofacar;ourideasofbuying,selling,andmoney;ourideasofeverysingleunavoidableandinterdependentpartofthiscomplex,subtle,andhopelesslyentangledwebofinteractionsandcontradictionsamongthethoughts,feelings,andfleshofvirtualstrangers.
This,afterall,was—andis—whatthegamecalledbusinessisallabout.Whatwastobecomeandhasremainedinmymindandheart—asuccessful
businesstransactionforbothJohnAndersonandme—nevercouldhavehappenedhadnotheinstinctively,yetunwittingly,usedtheE-MythEnterpriseMatrixinhisrelationshipwithhimself,myparents,hiswife,andme.
Aswedrove,hetalked.“IguessyoumightsayIhaveapassionformechanicalthings:howthey
look;howtheyfunction;howtheyexceedtheirownlimits;howtheyfitintotheworld.It’salwaysbeenapassionofmine,foraslongasIcanremember.”
Heturnedtolookatmeandsaid,“Howaboutyou?Doesanyofthismeananythingtoyou?”
“Idon’tknow,”Ianswered.
ButwhatJohnAndersonwassayingremindedmeofmysaxophoneteachermorethananythingelse.
“YouandMerlewouldreallygetalong,”Isuggestedtohim.“I’veneverknownanybodyasinterestedasMerleisinhowtomakethingsworkaswellastheypossiblycan.He’sanabsolutegeniuswhenitcomestofine-tuningmysaxophone.AllthewhileIfiguremyhornisaboutasgoodasit’lleverget,andthenMerledoessomethingtoit,andit’satotallynewhorn!Isthatwhatyoumean?”
JohnAndersonwasgrinningfromeartoear.“That’sitexactly,”hesaid.“That’swhatthiscarmeanstome.It’sthe
perfect1947Fordcoupe.IfIwantedtobuyausedcar,I’dwantittolookjustfinelikethis.I’dwantittodrivejustlikethis.I’dwantsomeonetohavecaredforitjustlikethis—likeitwasthemostimportantthingintheworld.Likewhateveritcouldbe,itwas.”
Heturneddownaquiet,tree-linedstreet,pulleduptothecurb,andparked.“Whydon’tyoutryit?”hesaid.AsIthinkbacktoit,itisasthoughIwerefatedtoownthatcar.AsthoughtheadintheAnaheimBulletinhadbeenaletterwrittendirectlyto
me.Asthoughthe1947FordcoupeinJohnAnderson’sgaragewaswaitingjust
forme.AsthoughheknewthatIwouldbetheonlyonetocall,theonlyonetoshow
upathisdoor,andthatIwouldbetheonlyonetodriveawayinhiscar.Andthatwhateverneededtobedonetoaccomplishthatend,hewoulddo,wouldhandle,andwouldtakeresponsibilityfor.
Afterdrivingthecarbacktohisgarage,replacingthetarp,andlockingthegaragedoor,wesatdownathiskitchentabletotalkbusiness.
HeneverevenaskedmeifIwantedtobuythecar;itwasaforegoneconclusion.
Instead,wetalkedaboutmyproblems.Myparents,mymoney,andmyneed.Aswetalked,apictureofthecarwaitingoutsideinthegaragehoveredin
mymind.Aswetalked,thefeelingofthecar’ssteeringwheellingeredinmyhands.Aswetalked,Icouldfeeltheexhilaratingsensationofdrivingquietlydown
thetree-linedstreet—inmycar.Icouldseethefleeting,shimmeringshadowsoftheleavesastheypassedsilentlyoverhead—inmycar.Icouldseethecrystal-cleargleamofthewindshield,thesoftgraysheenofthesheets,andthedeepburnishedchromedashboardJohnAndersonhadhadspeciallymade—formy
car.Aswetalked,itwasalloverbuttheshouting.JohnAndersoncalledmyparents.“Itseemswehaveaproblem,”hesaid.“Yoursonwantstobuymycar,andIdon’tthinkwehaveachoiceinthe
matter.Butbeforewetalkaboutit,I’dlikeforustomeet.”Icouldimaginemymother’sdark,worriedfrownattheotherendofthe
phone,myfather’susualuncontrollableangeratbeingtrappedintothediscussionhedidn’twanttohave—didn’tneedatthistime.Iwaitedfortheexplosion.But,surprisingly,itdidn’tcome.JohnAndersonlistenedquietlyandattentivelyforamomentortwo,noddedaffirmativelyafewtimes,agreedtosomethingapparentlysuggestedbymyparents,thenhungupthephone.
Theywerecomingoverinthirtyminutes,andIwastowaitforthem.NeedIpaintyouapictureofmyparentscomingtoJohnAnderson’sdoor,of
howweirdIfeltstandinginthehomeofsomeonewho,onlytwohoursbefore,hadbeenastranger(butwhonow,insomeoddandunfathomableway,hadtakenonthemantleofasurrogatefatherforthespecialritualthatwasunfoldingbeforeus)?NeedIdescribewaitingformyparentstosayhello,toacknowledgemypresence,waitingforthethunderoftheirterribleangeratbeingcaughtupinthisdrama?
NeedIpaintyouapictureofJohnAnderson’swarmandrespectfulgreeting—ofthecalm,graciousmanmyparentssawbeforetheminhisneatkhakiclothes,inhisneatandnormalhome,withhisbrightyetverycalmblueeyes?
NeedIdescribehiswife,whobynowhadbecomeaveryrealparticipantinthisstrangelynaturalunfoldingevent,smilingwarmlyinherlivingroom,invitingmyparentstotakeaseat,thecoffeeandcookiestheysharedtogether,withmehoveringonthefringesoftheirconversationlikesomenervous,fretting,anxious,andpesteringoldbird?
NeedIpaintapictureforyouoftheeventualwalktothegarage—thatmysterious,wondrousplacethatIhadfirstwalkedtoonlytwohoursbefore?OutofrespectforJohnAndersonandoutoftoleranceforme,myparentsweregoingtolookatthiscar,thistroublesomethingthathadsuddenlybroughtsomuchunneededemotionanddisordertotheirlives.
NeedwetakeinthesurpriseIwitnessedontheirfaces(especiallymyfather’s),astheysawwhatIhadseenwaitinginthegarage,andasmyfatherawkwardlyperformedtheritualwithJohnAndersonandthespotlesstantarpthatIhadperformedsoawkwardlyonlyashorttimebefore?
Ihadneverseentheboyinmyfather’sfaceuntilthatmoment,andIneversawitagainafterthatday.
NeedItakeyouontheunnecessarybutinevitableridethefourofustook—likeahastilyassembledfamily,myfathertoobigandsolidatthewheelforsuchanephemeraloccasion,JohnAndersonrelaxedandsmilinginthepassenger’sseatbesidehim,mymotherandIsittingstifflyuprightsidebysideinthesmallbackseatliketwodarkbirdsonatelephonewire,staringstraightahead,afraidtolookateachotherforfearsomespellmightbebrokenandwewouldallsuddenlyandterriblydisappearfromthefaceoftheearth?Suchastrangeanddreamyspectaclewemusthaveseemedtopeopleaswepassedbyontheroad,aswecarriedoutthemanyseparateyethyphenatedstepsofthisextraordinaryritual.
Needwegothrougheachofthosestill,quiet,intense,vivid,andunforgettablemomentsthatledusallremarkablyanduncomplaininglytotheveryend—thatinvisible,magical,andseamlesspointatwhichthepiecesofthisextraordinaryyetordinaryritualfinallyjoinedtogetherasnaturallyandaseffortlesslyastwoVelcrostrips?
NeedIsayit?Thedealwasdone!
VISUALPREFERENCES,EMOTIONALPREFERENCES,FUNCTIONALPREFERENCES,ANDFINANCIALPREFERENCES
Thepotencyandvitalityofabusinesscanonlybeactualizedtothedegreethatitfillsthepossibilitiestobediscoveredwithineachofthesecategoriesofpreferenceastheyareexperiencedbyeachoftheirfourprimaryinfluencers.
Ifyoudonotbelieveme,seethecar!Seethegarage!SeeJohnAnderson!Feeltheorder,thecontrol,theexquisitenaturalnessofthispotentially
disastrousevent.Everyone’spreferenceswereserved:myparents’,JohnAnderson’s,his
wife’s,andmine.Weallgotexactlywhatweneeded—whatwewanted.Itwasamarvelofsynchronicity.Let’stakealookatthecategoriesofpreferenceoneatatime.
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
(ListentothePodcastversionatMichaelEGerber.com)Therearefourcategoriesofpreferencethateverybusinessmustsatisfyinthemindsandheartsofeachofitsfourprimaryinfluencers.
VisualpreferencesEmotionalpreferencesFunctionalpreferencesFinancialpreferences
TheymakeupwhatIcalltheE-MythEnterpriseMatrix.EachofthesecategoriesisaccompaniedbyspecificcriteriathatmustbemetiftheenterpriseistobeanE-MythEnterprise.
Followmeonajourneythatwillmakethisclearandsignificanttoyou.
CHAPTERFOUR
THEFIRSTCATEGORYOFPREFERENCE:THEVISUALIDEAL
Younevergetasecondchancetomakeafirstimpression.
—Anonymous
WhenIfirstread“TheRedWheelbarrow,”apoembyWilliamCarlosWilliams,itwasasamuchyoungerman.Butitwasn’tuntilIfoundmyselfdrivingalongawindingSonomaCountycountryroadwithaclosefriendonarainyspringafternoonseveralyearslaterthatIfullyappreciatedit.
Ifyou’veneverbeenthere,thespringtimehillsinSonomaCounty,California,arelikearollinggreensea.Nestledbetweenthewavesaresmallranches,oakandeucalyptustrees,low-lyingbrush,andoutcroppingsofbrownjaggedrock.
Weweredrivingalonganarrowfence-linedroadwhenwecametoasharpturn.Uponturningthecorner,wesuddenlycameface-to-facewithascenesovivid,sostriking,thatIcanclearlyremembereverypartofittothisday.
Itwasasmall,yellowranchhouse,withbrightgreentrimaroundtheeavesandwhitemoldingaroundthewindowsandthedoor.
Asweturnedthecorner,thesuncameoutfrombehindastormcloudandstruckthehouse,transformingitintoablazeofyellowlightshotupfromthegroundandblindingmewithitsradiance.Myfriendmustalsohavebeentemporarilyblinded,becauseheslammedonthebreaks,andweskiddedtoahaltdirectlyinfrontofthesmallhouse’sfencedfrontyard.
Standingbeforeusinthemiddleoftheyard,halfwaybetweenthefenceandthehouse,wasalarge,glowing,brightred,meticulouslycaredforantiquewagon.Thedropsofrainwaterstreamingdownitssidesglistenedinthesunlikediamonds.
Butthatwasn’tall,forsurroundingthewagonwasayardfullofpurewhite
Butthatwasn’tall,forsurroundingthewagonwasayardfullofpurewhiteturkeys,theirredwattlesbobbingupanddown.
Canyouseeit?Canyoufeelit?Canyouholdthisimageinyourmind?Doyouwonderwhoseyarditis,and
whythewagon,andhadsomeonejustfedtheturkeys?Whatsmellsdoyouassociatewiththispicture?Whatfeelingscometomind?Whatthoughtsarisefromyourpast,fromyourimagination,fromideasyouhadaboutsuchthingswhenyouwereayoungboyorgirl,orevennow,asyouaretoday?
Canyouseehowprofoundlywe’retouchedbysuchvisualimages?Itshouldbecomeimmediatelyobvioustoyouhowimportanttheconception,
creation,andmaintenanceofastrongvisualimpressionistotheultimatesuccessofabusiness.
Abusiness,likeafarmyard—likeanoldcountryroad—isfirstandforemostavisualthing.Whatabusinesslookslikecommunicatesmoreaboutitsthoughts,feelings,considerations,andintentions,moreimmediatelyandmorelastingly—morehumanly—tothepeoplewithwhomitinteractsthananythingelsethatbusinesscando.
AsWilliamCarlosWilliamssaid,“Somuchdependsuponit!”Andsomuchdoes.Itisvirtuallyimpossibleforanyonetoseeanythingwithoutdrawingan
instantaneous,ifunconscious,conclusionaboutit.Infact,itisnotsomuchthatwequicklydrawconclusionsaboutwhatwe
see,butthattheconclusionswedrawwerealreadydrawnlongbeforewesawit.Eachofuspossesses(or,moreaccurately,ispossessedby)avast
undergroundvisualstorehousewecallourunconscious.Thisstorehouse,ourunconscious—thispicturebook—isburstingwitha
rich,complexassortmentofvisualsymbols,associations,interpretations,judgments,meanings,feelings,andphysicalreactions—inshort,conclusions—allofwhichconspireautomaticallywitheachotherwithlaserlikespeed,toshapeourveryexistence.
Whatwewear,whatwedrive,wherewework,whereandhowwelive,whatwethink—theveryobjects,spaces,colors,distances,forms,andpeoplewesurroundourselveswith,andbywhichwe’resurrounded—areallsignificantpartsofthisextraordinarilycomplexwebofvisualconclusionseachofushasformed.
Amothernursingherchild;agrandmotherpreparingtheThanksgivingturkeyforhergrown-upchildrenandhergrandchildren;ayoungfatherroughhousingwithhissonandtheirLabradorretrieverinthebackyard;thatsameman,growngray,showinghisgrandsonhowtotuneacarburetorina
periodtruck;atall,distinguishedmaninanimpeccablytailoreddarknavybluesuit,waitingoutsideacontemporaryofficebuilding—allarepictures,visualrepresentationsofdeeplyheldconclusionsweallhavemadesometimeinourlives.TheymayevenberepresentativeofCarlJung’sarchetypes—picturesweallshare,picturesthattouchusallinmuchthesameway.Thereareaninfinitenumberofsuchpictures,waitingtobeunderstood,waitingtobeidentified,butworkingunconsciouslyineachandeveryoneofusinthesameway.Nomatterwhatanyofusthinks,theyshapeourlives.
DoyouseewhatImean?Doyouunderstandtheimportanceofthisconcept?Somuchdependsuponit!Ifallthatweseetouchesussoimmediately,socompletely;ifeveryvisual
impressionwereceivecauseseachofustofeel,think,andactinacertainpreprogrammed—ifnottotallypredictable—way(anditdoes!),isitanywonder,then,thattheconception,creation,andmaintenanceofthevisualimpressionofabusinessissocriticaltoitssuccess?
ShoulditcomeassuchasurprisetoyouwhenIsaythattoconceive,create,andsuccessfullymaintainanextraordinarilyeffectivebusiness—anE-MythEnterprise—hasmuchmoretodowiththemanagementofimpressionsthanithastodowiththemanagementofpeople?
Themanagementofimpressionsisthemanagementofpeople.Andvisualimpressionsarethemostpowerfulimpressionsofall.Theproblemseemstobethatthevastmajorityofbusinessesinthiscountry
—smallorlarge—simplydon’tgetit,orwhat’sworse,simplydon’tcare.The“searchforexcellence”intheoryseemssomehowtohaveeludedusin
practice.Contrarytopopularbelief,there’sanoverwhelmingpovertyofthe
entrepreneurialspiritinthiscountry.Walkordrivedownjustaboutanycommercialstreetorwalkinsidejust
aboutanybusinessyouchoose,andyou’llimmediatelybeaccostedbythevisualsymptomsofourentrepreneurialmalaise.
Signs,windows,sidewalks,buildings,trucks,employees’dress,bathrooms,floors,countertops,aisles,walls—rundown,dirty,wornout,unimaginative,decaying,cluttered,confusing—avisualmess!—businessesdisintegratingrightbeforeoureyes.
Yetallthosesignswerenewonce,allthewindowsnewlyinstalled;allthefloors,thewalls,thebathrooms,thedesks,thefilecabinets,thetrucks,theautomobiles,theforklifts,themerchandiseracks,everysingleelementofeverybusinesswasattheoutsetafunctionofsomeone’sdream.Whathappened?Whatstoppedworking?Whatdopeoplethinkastheygotoworkthere,asthey
buythere?Whataretheownersthinking?Ibelieveitcouldbeproventhatavisuallydeterioratingbusinessistheactof
anemotionallydeterioratingmind.Whatdopeoplefeelastheyarevisuallyaccostedeverydayoftheirlivesby
allofthisnegativity,neglect,anddisinterest?Well,letmetellyouastory.Thereoncewasarelativelysmallcompanythatwasstrugglingagainstgreat
oddstogainmarketsharefromahugeGoliathofacompany.Thelittlecompanysputteredforyears,sufferingfrompoorleadershipandamixofnearlyindistinguishableproductsthatconfusedconsumers,thatperformedpoorly,thatwereunattractiveindesign.Theiralreadymeagermarketsharecontinuedtoplummet,asdidthevalueoftheirstock.Theywereonthevergeofgoingawayforeverwhensomeonehadabrilliantidea:“Let’sbringbackoneofouroriginalfounderstoruntheplace.Heappearstobethelastpersonassociatedwiththiscompanywhohadanysortofvision.”
Sotheydid.TheybroughtinafoundingpartnertobethenewCEO.Sodirewasthefinancialconditionofthecompany—butsomuchfaithdidthenewCEOhaveinitspotential—thatheagreedtoreturntoworkforanannualsalaryofonedollar,plusstockoptions.
Hebegantoturnthingsaroundalmostimmediately.Heoversawthedesignofasleeknewproductandsoonthereafteroffereditinarangeofbrightcolorsthatweremimickedbyscoresofothercompaniesthatmanufacturedeverythingfromringbinderstokitchenblenders.Theproducttookoff.Itsetanewstandardforvisualpreferenceintermsofcolor.
Successfollowedsuccess,untilonedayin2001,theCEOstoodinfrontofacrowdatthecompany’sannualconventionandannouncedanewproductthatwouldrevolutionizeanentireindustry,andeventuallyaccountfor70percentofaparticularmarket.
Yes,thatCEOisSteveJobs.Thecompany,ofcourse,isApple.ThelonglistofrevolutionaryproductsincludestheoriginalcolorfuliMac,theiPod,iTunes,andtheiPhone.Thecompanyisnolongeronthevergeofextinction,andthestockoptions(alongwithhisPixarAnimationStudiosinvestment,ofcourse)provedtobeagoodthingforSteveJobs.Heisnow,amongotherthings,theWaltDisneyCompany’slargestsingleshareholder.
Throughitsproducts,itspackaging,anditsretailstores,Appledemonstrateshowimportantthevisualidealistobusiness.
Letmetellyouanotherstorythatwillfurtherilluminatethispointforyou.It’sabouttwobrotherswhoownedagreatstore.
Notthatitwasalwaysagreatstore—itwasn’t.Indeed,ifyouhadseenitwhenIfirstsawit,you’dhavehadtoagreewith
Indeed,ifyouhadseenitwhenIfirstsawit,you’dhavehadtoagreewithmethat,inMartyandSolWeissberg’sbusiness,avisualrenaissancehassincetakenplace.
“Atransformation,”Martycalledit.“Amiracle,”saidSol.Butwhateveryou’dcallit,ithappenedthisway.
Severalyearsago,MartyWeissbergwascalledhomefromgraduateschoolattheUniversityofSanFranciscotohelphisolderbrother,Sol,runthefamilybusinessaftertheirfather,Morris,diedunexpectedlyattheyoungageoffifty-three.
Fortunatelyforbothofthem,thebusiness,Weissberg’sArmy-NavySurplusStore,sortofranitself,ifonlyinalacklusterway.
Customerscameandwent;employeestoo.Nobodyseemedtoknowwhy.AlthoughSolandMartyhadbothservedtheirapprenticeshipinthebusiness
fromtheagesofeightandten,respectively,mostoftheirtimehadbeenspentattheirfather’sbeckandcall,unpackingthegreen,gray,blue,brown,andblackmilitarymerchandisethatarrivedinenormousbrowncardboardboxesfromwho-knew-whereandpricingitaccordingtotheirfather’scryptic,hand-printedinstructions,usingapricingstrategyonlyMorrisunderstood.Theythenstackedthemerchandiseonthealreadyjam-packedshelvesorhungitonthespecialracksthattheirfatherorderedthemtomovearoundthestoreatwhatwereapparentlystrategicallysignificanttimesoftheweekorthemonth—fromthebackofthestoretothefront,toeithertherightsideortheleft,downthemiddleaisleorbythecashregister.Onclear,sunnydays,somemerchandisewasmovedtothesidewalkandceremoniouslylabeledSALEinbrightredletters(eventhoughbothMartyandSolknewthatthepriceshadn’tbeenchanged).
MartyandSolsweptthefloors,threwoutthetrash,cleanedthewindows,andoccasionally—onlyoccasionally—wereentrustedto“workwiththecustomers”whotheirfatherseemedtoknowwouldn’tbuy,andrarelydid.Morrisdealtwithalltherest—the“real”customers.
Unfortunately—anddespitethelong,dreary,chore-filledhourstheyspentinthestoreafterschoolandonweekendsformostoftheiradolescentyears—neitherMartynorSol“knewthebusiness,”astheirfatherwasgiventosay.Morriswassobusyworkingthestorethathehadnevergottenaroundtoteachingthem.
Andthenhedied,andthestorewastheirs—abusinessbothMartyandSolhated,notonlyforallthetimeithadtakenfromthemasboys,butfortheirinability—nowthattheycouldfinallybefreeofitonceandforall—tosaygood-
inability—nowthattheycouldfinallybefreeofitonceandforall—tosaygood-byetoit,toletgoofit,andfinallytogetonwiththepurposeoftheirindividuallives.
Perhapsthatwasit.Therewasnopurpose.ToMartyandSol,iftherewasalifeotherthanthebusiness,theydidn’t
knowwhatitwas.Sotheylivedtheonlyonetheyknew.Forthefirstsixmonthsorso,SolandMartygloweredateachotheracross
distancesoftheirownmaking,repeatinginsilencethedrearyritualsoftheirboyhoodspast.
Butnow,withouttheirfathertogoadthemon,theritualswereevenmorelifelessthanbefore.
NoMorriswastheretotellthemtomovetheracks.NoMorriswastheretoremindthemtopainttheredSALEsigns.NoMorrisexhortedthemtosweepthefloors,totakeoutthetrash,orto
washthewindows.
No,therewasnoMorristheretodoit,soSoldidit.Hedidtheonlythinghecouldthinktodo:hebecameMorris.Hebecame
thefatherthetwoofthemhadlost.OnedayhewasSol,thenextday,Morris.Sol,infact,becamethechief
proponentof“OldCo.”Hewasdoingthethingsofthepast,inthewaysofthepast.
Hebegantospendlonghoursafterthestorewasclosed,whileMartyhadgonehometorummagethroughhisfather’seffects,toseekoutclues—atrail,asign,thatcouldteachhimwhathisfatherneverdid—thatcouldteachhimwhathisfatherknew.
AnewlightinMartywasbeginningtoform.Martywasbeginningtoawakentotheexhilaratingpossibilitythathewasnow,finally,freetobecomehimself.MartybecameaninspiredDreamer,eagertotransform“OldCo”into“NewCo.”
Youcouldseeitinhiseyes.
AfriendofminewhoworkedcloselywithWaltDisneyformorethanfifteenyearsrelatedtomewhatitwasthatmadeDisneyaspecialmantoallthosewhoknewhim.
“Hehadtheinnateabilitytoseethingswholeinacompletelyoriginalway,”myfriendsaid.
“Whereeveryoneelseinameetingwouldbecaughtupinspecifics,Waltcouldseethefinishedproduct,hecouldenvisionwhateveryoneelseseemedtomiss—themagicthatlivedwithineveryprojectjustbeneaththesurface,waitingtobediscovered.”
“That’swhereWaltlived,”myfriendtoldme,“inthemagicbeneaththesurfaceofthings.Andonlywhenherevealedwhathesawtherediditbecomeobvioustoeveryoneelsethatitwasthereallthetime.”
That,Imightsuggest,isalsowhereMartyWeissberginhisownsmall,butnotinsignificant,waywasbeginningtolive—beneaththesurfaceofthings.
Indeed,Ibelievethatitisthere,beneaththesurfaceofthings,wherethesurface,thetruereality,actuallyresides.
Andsoitisthatthevisualpreferenceissoimmediatelycriticaltothe
successofabusiness.
OnedaythatthoughtcametoMarty.Ithithimsquarebetweentheeyes.Martyclearlysaw,fortheveryfirsttime,whathadalwaysbeenthere,hadhauntedhimthroughouthischildhood,hadclungtohimlikeanoppressivegrayfogasheleftschooleverydayonhiswaytothestore,hadwaitedforhimlikethatenormous,grotesqueSumatrantoadhehadonceseenatthezoo,squattingmotionlessasastoneinitssmallglassaquarium,itsmottledbrownlumpyskinglisteninginthegreen-graytropicallight.Itwasallsougly!
Fromthefrontofthestore,withitsfadedredneonlettersspellingoutthefamilynameinbelligerentblocklettersfourteenfeetlongandfourfeethighacrossthesquat,squarefaceoftheoldbrickbuilding,totheinsideofthestore,withitslow,browntinceilinganditsrowsoffluorescentlights,whichcouldneverbrightenthedarknessofthestorebeneaththem;fromtheblack,perenniallysoiledlinoleumfloors,thegraymetalrackswiththeirsqueakyrubberwheels,andtherowsofdarkmetalshelves,tothehand-letteredsignshangingfromtheceilingtellingthecustomerswheretofind—amongthebewilderingarrayofsloppilystackedmerchandise—thepants,jackets,boots,socks,belts,knives,canteens,shirts,hats,tents,sleepingbags,mosquitonets,socketwrenches,andalltheotherexoticmilitaryparaphernaliaknownassurplus—italldisplayedablatantlackofattention,ofcare,ofimagination,ofinterest.
Thentherewasthebackofthestore:themassive,rusted,steel-frameddoors;thethick,scarred,ancientplanksofthefloorandtheloadingdock,stainedblackfromyearsofabuse;theswollen,cracked,andtorturedasphaltofthenarrow,
twistingalleywithitsever-presenttrash,brokenbottles,overflowinggarbagecans,andsaggingchain-linkfencesrunningbetweenthedark-stainedbrickbackwallsoftheneighboringstores.
Finally,therewasthebathroom:smallanddank,likeacold,sweatycloset,withitsunpaintedconcretefloor,boththewashbowlandtoiletstainedandstreakedafteryearsofuse;withitssolitary,nakedhundred-wattbulbhangingfromtheimpenetrableshadowsabove,theonlyotherlightcomingfromasmallwindowabovethesink,barredagainstforcibleentry(asthoughanyonewouldwanttobreakinthere!).Thewholeroomwasfilthyfromyearsofneglect.Thedirt,thecobwebs,andwhateverotherindescribableblighthadrisenfromthealleybehindthestorehadcrustedoverthewindowandcastayellow,spottedpalloverthepeeling,dampbrowndoorandwalls.
Asaboy,Martywoulddoanythingotherthangotothebathroominthatstore,andwhenhefinallycouldn’twaitanylonger,he’dgodownthestreettothegasstationatthecorner,whereatleasttherestroomwasclean.
Atlast,Martyfullyunderstoodwhatitwasaboutthestorethatsodeeplydepressedhim.
DespitewhatMartyhadalwaysbelievedtobetrueabouthisfather—thathelovednothingelsebuthisbusiness,thathecaredfornothingelsebutthestore—Martynowknewthatexactlytheoppositewastrue.
HeknewthatthestorehadsoangeredMorris—soinfuriatedhim,soconsumedhim—thattherewassimplynothingleftforanyone,oranything,else.
Itwasn’tthefactthathehatedthestorethatdepressedMartysomuch,butthathisfatherhad.
TheuglinessofWeissberg’sArmy-Navywasamutebuteloquenttestamenttothefactthathisfatherfelthimself—andthenbecame—aprisonerthere,untiltheonlywayoutwastodie.
SothatwasthemadnessthatMartysawinSol’seyes.Likehisfatherbeforehim,Soltoohadbecomeaprisonerofthestore.Like
hisfatherbeforehim,thestoreenragedSol.Likehisfatherbeforehim,thestorebecameSol’sjustificationfornotliving.FirstforMorris,andnowforSol,thestorehadbecometheuglyfactoftheirabsenceofloveforwhattheyweredoingandofthelifetheyhadbothgivenuptodoit.
And,likeMorris,Solmistakenlythoughtthatbypossessingthestore,byowningit—bykeepingithissecret—hecouldultimatelygeteven.
OnlyMartyknewdifferent.
AtDisneyland,ittakes5,000gallonsofpainteachyeartokeeptheparklooking
betterthannew.Thereare500,000costumepiecestomaintainandmorethan100,000lightbulbsthathavetobechangedastheyburnout.Thentherearethegardens,therestaurants,andthemyriadothersmall,insignificanttasksassociatedwiththevisualpreparationofDisneylandforeverydaytheparkopensforbusiness,justasWalthadenvisioneditinhisdreamofthebusinessbackatthebeginningwhenmostpeoplethoughthimtobecrazy(“Youwanttodowhat?”),whentheparkwasjustanoutsized,elaborate,andinsaneidea,which,accordingtocommonbusinesswisdomatthetime(andatthistime,andforalltimes,itseems),couldneverbejustifiedeconomically.Itwasthatidealistic.
McDonald’shasmorethan31,000locations,anditsnearlyhalfmillionemployeesserve47millioncustomersdaily.Recentestimatesrevealthatitcoststhecompanymorethan$7millionadaytoperformthedailyritualofvisuallypreparingthefloors,theequipment,thewindows,theparkinglots,thesidewalks,thesignage,thecounters,theuniforms,andtheequipment—alltheunavoidableandintegralpartsofthevisualintegrityoftheMcDonald’scorporateimageasimaginedbyitsfounder,RayKroc,attheveryoutsetofthebusinesswhenhehadcrewpeoplecleanupallthelitterwithinablockofeachrestaurant.
AtFederalExpress,itcostsanestimated$70,000adaytosteamwashthecompany’s30,000internationallyrecognizedtruckstomakecertainthatFedExmaintainsitsvisualimpactasitwasenvisionedbyFredSmith,longbeforethebusinessbegan,longbeforethefirsttruckrolledoutthedoor.
MartyandItalkedaboutthemiraculoustransformationofhisandSol’sbusiness.
“Iswear,”Martysaidtome,“itstruckmejustlikethat.”Hecontinued,adarklightgrowinginhiseyes.“Therewasthemourningperiod,ofcourse,eventhoughIdidn’trealize
that’swhatIwasdoingatthetime.“Naturally,SolandImournedindifferentways.ToSol,mourningwasan
actofhonoringthepast.Hefeltsomehowthathehadletourfatherdown,thathehaddisappointedhim,thatifhehadtakenamoreactiveinterestinthebusiness,ourfatherwouldn’thavedied.Sohewascompelledtoactouteverylittlethingmyfatherdid,exactlyasmyfatherwouldhavedoneit.
“Tome,”Martycontinued,“mourningwasanactofgrievingformylostchildhood,thegamesIneverplayed,theplayingweneverdidasafamily,thelackofpurejoyinourlife.
“AtfirstIthoughtitwasjustSolwhowasgoingcrazy.ButthenIcameto
“AtfirstIthoughtitwasjustSolwhowasgoingcrazy.ButthenIcametorealizethatwebothwere.But,ofcourse,wehadnochildhood.Ourfatherwasalunatic.Heraisedustobelunatics.Weweresimplyactingouthiswishes.
“Gradually,deepinmyheart,Ibegantofeelasharp,aching,almostunbearablepainfortheextraordinarypricemyfatherhadmadeSolandmepayaschildren:thelossofjoy,thelossofimagination,thelossofcuriosity,ofcolor,ofvitality,ofcreativity,thelossofourchildhood,thelossofourselves.
“IswearIcarriedthepainofthatlossaroundwithmeeveryday,fromthedayIcamehometothestoreaftermyfatherdied,tothedaythatthelightturneditselfoninmyheart.
“And,suddenly,Ifoundmyselffree,notasatwenty-four-year-oldman,butasaboy.Itsuddenlybecamecleartome,notsomuchsomethingIthought,butinaburstoffeelingsostrong,sodeeplycompelling,thatIbegantosobuncontrollably.Imusthavecriedforhours.
“Thismightsoundstupidtoyou,”Martysaidtome,almostapologetically,asthoughwhathewasabouttosaywouldbeimpossibleformetounderstand,“butitwaslikeIfellinlovewithmyselfasaboy.ItwaslikeIhad,inaninstant,becomeboththefatherIwishI’dhadandtheboyIwishIcouldhavebeen.AnditwaslikethefatherIhadnowbecometouchedme,hisson,andsaid,‘Trustyourheart!Whateveryouneedtodo,doit!Don’twait!There’stimeenoughtodie.Iloveyou.”
Martycontinued,almostinawhisper,tearswellinginhiseyes,“Atthatmoment,IlovedmyfathermorethanIcouldeverremember.Icouldfinallycryforhim,forthelossofhischildhood,fortheterriblepricehehadpaidforbeingaprisonerinaprisonofhisownmaking.God,howdesperatehemusthavebeen.”
Hewasquietforamoment,thenwenton.“Andwhathappened,whenIwasreunitedwithmyself,withthisstrangebut
wonderfullittleboyIhadbeen,IfinallyrealizedthatIwassuddenlyfreetodoanythingIwishedwiththestore.Icouldsellit.Icouldgiveitaway.IcouldgivemysharetoSol.IcouldevenburnitdownifIwanted.Ourfatherwasgone.Theprisondoorwasopen.Therewasnotracktofollowbutmyown.Ididn’tneedpermissionanymore!”
Thevisualtransformationofabusinessisanemotionalthing;itcomesbestfromtheheart.Itisacreationthatwhendoneexceedinglywellisalwaysendowedwithapurepassiontotouchsomethingbeyondtheordinary—themosthumanofexpressions,astatementofdignity,ofcaring,ofconsideration,butmostofall,oflove.
Ithaslesstodowiththebusinessasacommercialenterprisethanithastodowiththebusinessasahumanenterprise—itsrelationshipwithpeople,theirideas,andthethingsthatconnectpeopleandtheirideaswiththeworldaroundthem.
Inthisregard,thebusinessdoesn’tonlyproduceproducts,itbecomestheproductofthepeoplebywhomandforwhomitiscreated.
Toeffectivelydifferentiatethebusiness-as-a-productfromallotherbusinesses,abusinessmustbeavisualinterpretationofaspecificandwellthoughtoutpointofvieworphilosophyregardingthequestionswehumanshaveaskedofourselvessincetimeimmemorial—questionsoffreedom,ofGod,oflaw,ofintegrity,ofpurpose,ofloyalty,ofservice,ofhonor,oforder,ofbeauty,ofself-respectandrespectforothers,andmanymore.
Inshort,toriseabovetheordinary,abusinessmustbecomeavisualstatementofbelief,ofmeaning—amediumthroughwhichpeoplecommunicatewithoneanotheraboutwhattheybelievein,whattheycarefor,whatisimportanttothem.
Takentothatlevel,thevisualizationofabusinessisanartform.Andjustlikeaworkofart,thereareatleastsixtangiblecomponentsthatcomprisetheVisualMatrixthatneedtobeconsideredintheconstructionofabusiness.
Thesesixcomponentsarecolor,form,scale,order,detail,andinformation.
Color.ColoristhefirstthingpeopleseeandisthereforeacriticalcomponentoftheVisualMatrix.Whatcolorswillbestcommunicatethepurposeofthebusiness?Isthebusinessplayful?Isitserious?Isitupbeat?Isitformal?Isthebusinessintendedtotouchtheheartsofpeople,justtheirminds,orboththeirheartsandminds?
WhenIsay“playful,”docertaincolorscometomind?WhenIsay“somber,”doyouseethedarkcolorsitevokes?WhenIsay“upbeat,”canyouvisualizewhatthosecolorsmightbe?Canyouhearthesoundssuchcolorsmake?
Form.Whatformdoesthebusinesstake—fromthelogo,tothestyleofdress,tothearchitecture,totheproducts?Isitbold,adventurous,sedate,austere,comfortable,orpowerful?Doesitcallforrounded,softedgesorsharp,angularedges?Oraretherefewedgesatall?
Canyouimagineinyourmind’seyewhatformacomfortablebusiness
mighttake?Doyouremembertheoldyellowranchhouse,withitssmallflockofwhiteturkeysanditsantiqueredwagon?Wasthatcomfortable,orwasitadventurous?CanyouimagineThanksgivinginsuchaplace?Thefamilyaroundthetable;Grandmainherwire-rimmedglasses;Granddadgrinningathisyoungestgrandson,whoissittinginhishighchairandthrowingfoodacrossthetable;everyonechattering,aboutthepast,thepresent,thefuture;foodstreamingandplentifulonthehugediningroomtable?Comfortable?Austere?Sedate?Powerful?Whenyouknowwhatyouwishtocommunicateinyourbusiness,theformwillalmostimmediatelyappear.
Scale.Andwhatofthescaleofthebusiness?Isitbuiltforpeople,orisitbuilttointimidatepeople?Doesittakeourbreathaway,ordoesitmakeuslaugh?Doesitsay,“Thisisgoingtobeonehellofagoodtime,”asDisneylandsays,stretchingoutasitdoesasfarastheeyecansee,ordoesitconfineussothatwesimplywanttogetout?IsitthescaleofaGothicchurchorofaminiaturerailroad?AGothicchurchisnotbuiltforcomfort;aminiaturerailroaddoesnotconveypower.
Order.OrderissuchacriticalcomponentofthevisualbusinessthatIamcontinuallyamazedathowobliviousmostbusinessesseemtobetothepricetheypayeverysingledayforignoringit.Orderisjustwhatitsays:itisallthingsintheirplace;itiscleanliness;itisimpeccability;itisadeep,abidingsenseofcontrol—thatthereisalogic,asensitivity,acommitmenttokeepingthejungleoutoftheclearing;itisabeliefinthespecialqualityofhumanlife;itisthemeticulousattentionpaidtothemaintenance—tothesurfaceofthings,ofsustainingthenewness,thefreshness,theessenceofthingsaswehaveenvisionedthemnew.OrderispreparingthegroundbeforeusasthoughGodhimselfweretovisit.
Detail.Oncepeoplehavewalkedinthedoor,oncetheyhavetakenacloserlook,itistheattentiontodetailthattheybegintonotice:theshiningcopperrivets,exactlyplacedtwoinchesapartonthealuminumwastebaskets;thespeciallydesignedpinwiththecompany’slogoontheshirtsorapronsofeveryemployee.Detailisthecareoneputsintoallthelittlethingsofthebusiness,soaspeoplelookcloser,theyaresurprisedbywhattheyfind.
Information.Everybusinessmustfindavisualwaytotransmitinformationtoitscustomers,itsemployees,itssuppliers,anditslenders—theinformationtheyeachperceivetheyneed—inthemostvisuallycompellingwaypossible.Asmallbusinessconsultingfirmcoversitsreceptionareawallswith“ImpactReports”—lettersfromitsclients—tellingtheworldhowtheirbusinessisimproving.Apetstoreplacescharminglyinformativepicturecardsnexttoeachcage,describingtheinhabitant’straitsasapet,aswellaswheretheycamefrom,whattheyeat,whethertheyaregoodforchildren,andtheamountofcaretheyrequire.Anautobodyshopprovidesitscustomerswithalargeglasswindowlookingontotheshopfloor,whereitsemployeesgoabouttheirspecializedtasksinuniformsandwithequipmentcolor-codedbyfunction,whileaCDplayingoveraPAsystemdescribeswhatthecustomeriswatching.
Ofcourse,thereareoptionsinallofthis.Whetheritbeameatmarket,agrocerystore,anautodealership,a
semiconductorplant,achurch,oranAppleComputerstore,thevisualizationofabusinesscanbeeitherreducedtothemerelypragmaticorraisedtotheideal.Itcanbeordinaryorsublime.
Butitiscertainthatthehigheronereaches,themorepoweronefeels.
Giventheirdifferentperspectives,itwasn’teasyforeitherofthem,butMartyandSolbegantotalk.
Atfirst,SolremindedMartyofMorris.Hegotangry,hestormedawayfromhisoffice.He’dstayhunkereddownathisdeskfordays.
Butgradually,overaperiodofseveralmonths,asMartydescribedit,“Morrisfinallyletgoofhim.”
“Thetruthwas,”Martywenton,“thatSolandIhadmoreincommonwitheachotherthanweeverdidwithourfather.”
Theybegantotalk.Theybegantoshare.Theybegantofeelwhatitwasliketobebrothers.
Atlonglastthegulfbetweenthemvanished,andMartytoldSolwhathehadinmind.
“Iwantthisplacetobecomeaplaceoflight,”Martysaid.“Iwantpeopletocomefromallovertownjusttoseeit,whethertheybuy
somethingornot.
somethingornot.“Iwanttoputinasmallrestaurant,acoffeeshop,andanindoorplayground
forlittlekidstoplayinwhiletheirparentswalkaroundthestore,withsomeonetowatchthemandtakecareofthemforaslongastheirparentswant.
“Iwanttheretobeasmallstreamrunningthroughtheplayground,withawaterfallroaringdownfromtheceiling.AndIwantkoifish—goldenandwhiteandblackspottedkoiswimminginthestream,withgreenplants,andaplaceforthekidstofeedthefishthreetimesaday,andasmallpettingzoo,withlambs,andpygmygoats,andminiaturehorses.Iwanttheplacetobebright,andopen,andcolorful,andmostofallIwantittobeclean,spotless,absolutelyperfect.
“Iwantittobefun,too.Iwantpeopletolovebeinghere—ouremployees,andourcustomers,andyou,Sol,andme.Iwanttotearouttheceilingandgostraightuptotheroofjoiststogiveussomeroomtobreathe!Iwanttotearoutthewallboardandsandblastthebrickwallsuntilthey’reabsolutelynew,brightredandwhite.Iwanttotearupthelinoleumandlaydownthinstripsofclearwhiteoak,intermixedwithbrickandflagstonepathsleadingtothegardenatthebaseofthewaterfall.
“Iwanttohavebrightgrass-greenantiquebencheslocatedthroughoutthestore,sothatifpeoplewanttotakealoadofftheirfeet,theycan.
“Iwanttheretobemusic,notMuzak,butrealmusic,alivepiano,orastringquartet,andsometimes,justforthehellofit,asmallrockband,togivetheplaceakickintheass!
“Iwanttomarketcolorfulproducts;nomoredarkblue,black,green,gray,andbrown,butbrightblue,andred,andyellow,andgreen,andproductsforcamping,hiking,fishing,hunting,alloutdoorrecreationandsports.AndIwantthemtobedisplayedcolorfully,dramatically,withbigcolorfulplastickeysgiventothecustomerswhentheywalkinthedoortouseinvideoterminalstoprovidethemwithalltheinformationthey’llneedaboutthemoredifficult-to-understandproducts,sothatthey’llneverhavetoaskanyonewhereanythingis,orwhatitdoes,orwhatthedifferenceisbetweenoneproductoranother.
“Canyouseeit,Sol?“Andthat’sonlythebeginning.Iwantthisplacetoshine!AndIwant
somethinggrand,somethingabsolutelyastonishing,somethingtotallyunexpectedandstunningsuspendedfromtheceilingbyinvisiblewiretoswoopdownonthecustomersastheywalkinthefrontdoor.Perhapsonemonthitwillbeagiantglider,oranothermontharealbiplane,or—evenbetter—howaboutanincredibletrue-to-lifemodelofanAmericanbaldeaglewitheighteen-footwingsstretchedoutoneitherside,staringdownateveryonewithitshuge,sharpyellow,eagleeyes!
“Mostofall,Sol,Iwanttochangeournameandthefaceofthebuilding,
“Mostofall,Sol,Iwanttochangeournameandthefaceofthebuilding,andIwantthesigntosoarupfromtheroofsothatnoonecanpossiblymissit.AndIwantthesigntosay
FLYINGHIGH&FIELDSTONEGREEN!”
Martyreachedbehindhim,tookoutalargebrownpaper–wrappedpackage,toreitopen,andturnedtheartboardwithinitaroundsothatSolcouldsee.
Solstaredattheillustrationandblinkedtwicebeforesaying,“But,whatdoesitmean?”
Martybegantolaugh,thentoroar,holdinghissides,tearswellingfromhiseyes.
“Itmeans,oldbuddy,thingsareabouttochange.”
Thatstoresucceeded.Infact,itexceededallofMarty’sexpectations.Solwatchedallofthisinamazement.Weissberg’sArmy-NavySurplusbecameasportinggoods/camping/mountain-climbingempire,withstoreseverywhere.
Canyouguesswhatthatchain,thatempire,iscalledtoday?No,it’snotWeissberg’s.It’snoteven
FLYINGHIGH&FIELDSTONEGREEN!
Canyouguess?You’dprobablybewrong.ButIcantellyouthis:thesixcomponentsoftheVisualMatrixallcome
togetherinperfectunisonatthisamazingenterprise.Onyournext(orfirst)visittoaStarbucks,anApplestore,aFedExoffice,or
asimilarbusiness,challengeyourselftonoticetheinterplayofthesixcomponentsoftheVisualMatrix:color,form,scale,order,detail,andinformation.
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
(ListentothePodcastversionatMichaelEGerber.com)
Thevisualidealisvitaltoeverybusinessineveryindustry.Theconception,creation,andmaintenanceofthevisualimpressionofabusinessiscriticaltoitssuccess.
Theproblemseemstobethatthevastmajorityofbusinessesinthiscountry—smallorlarge—simplydon’tgetit,orwhat’sworse,simplydon’tcare.Walkordrivedownjustaboutanycommercialstreetorwalkinsidejustaboutanybusinessyouchoose,andyou’llimmediatelybeaccostedbythevisualsymptomsofourentrepreneurialmalaise.Ibelieveitcouldbeproventhatavisuallydeterioratingbusinessistheactofanemotionallydeterioratingmind,ofleadershiponthevergeoffailure.
Thesixcomponentsofvisualpreferencearecolor,form,scale,order,detail,andinformation.
ColoristhefirstthingpeopleseeandisthereforeacriticalcomponentoftheVisualMatrix.
Formfollowscolorintheorderofimportance.Whatformdoesthebusinesstake—fromthelogo,tothestyleofdress,tothearchitecture,totheproducts?
Scaleisnext.Isthebusinessbuiltforpeople,orisitbuilttointimidatepeople?Doesittakeourbreathaway,ordoesitmakeuslaugh?Doesitsay(asDisneylandannouncesthemomentyouwalkthroughthegates),“Thisisgoingtobeonehellofagoodtime!”
FourthintheVisualMatrixisorder.Orderisjustwhatitsays:itisallthingsintheirplace;itiscleanliness;itisimpeccability;itisadeep,abidingsenseofcontrol;itisthemeticulousattentionpaidtothemaintenance—tothesurfaceofthings,ofsustainingthenewness,thefreshness,theessenceofthingsaswehaveenvisionedthemnew.
Fifthinimportanceisdetail.Detailisthecareoneputsintoallthelittlethingsofthebusiness,soaspeoplelookcloser,theyaresurprisedbywhattheyfind.
Andsixth,isinformation.Everybusinessmustfindavisualwaytotransmitmeaningfulinformationtoitscustomers,itsemployees,itssuppliers,anditslenders—theinformationtheyeachperceivetheyneed—inthemostvisuallycompellingwaypossible.
Forasuccessfulenterprise,“servingup”thevisualidealisnotanoption.It’sanecessity.
anecessity.
CHAPTERFIVE
THESECONDCATEGORYOFPREFERENCE:THEEMOTIONALIDEAL
ManisaropestretchedbetweentheanimalandtheSuperman—aropeoveranabyss.Adangerouscrossing,a
dangerouswayfaring,adangerouslooking-back,adangeroustremblingandhalting.
—FriedrichNietzsche,ThusSpakeZarathustra
TobecomeanE-MythEnterprise,itisessentialforabusinesstobecomeavisualproduction.Butfortheproductiontohavemeaning,fortheformtohavesubstance,thesecondcategoryofpreference,theemotionalideal,isequallyessential,lesttheproductiondegenerateintowhatmightbecalledvisualrhetoric,“fullofsoundandfury,signifyingnothing.”
Isbusinessaformofwar?ConsiderthelongconflictinIraq.Fightinginthedesert,surroundedbynothingness,amanorwomanrunsthe
riskoflosingsightofwhyheorsheisthere,excepttosurvive.Asoldier’smotivationbecomesdoublyimportant.IbelievethatU.S.officersinvolvedinanyconflictshouldmaketheefforttotakethetimetositwiththeirtroops,toexplaingoals,toknoweverysoldierpersonally,togivethemthefeelingthattheyarethebestandthattheirmissionisvital.
Leadershipisatapremiuminanywar,andwithoutit,nothingwillbeachieved.
Itmightbearguedthatthecomparisonbetweenwarandbusinessisanunreasonableone;thatwarbringswithitaspecialedge,aunifyingprinciple,thatisimpossibletosustaininanordinarybusinessengagedinmundanecommercialtransactionswherelifeanddeathisnotaday-to-dayquestion,ifaquestionatall.
Ibelievetheoppositeistrue.
Ibelievetheoppositeistrue.Ibelieveagreatbusinessbecomessotothedegreethat,likewar,itraises
seriousquestions.Itbringsusface-to-facewithourownmortality.Iftherearenoextrahumanchallenges,itcreatesthemandengageswithitsownresistancetochangethedesertofitsowndoubt.Itformsitspeopleintosquads,andcompanies,andregiments,andbattalions,anddivisionsanddetermineswheretheenemyis(itisalwayswithin),andlaunches,timeandtimeagain,intobattleafterbattle,ifonlytotakeoneyardatatime,toexperiencenotsomuchthelandthatisacquired(although,ofcourse,thereisthat),buttheextraordinaryinnerstrengththatisdeveloped,thecamaraderie,thepassionthatisshared,passedon,handedfrompersontoperson,fromhearttoheart;asenseofpurpose,ofvalue,ofbeingasfullyhumanaswecanbe,givenourlimitedunderstanding,ourlimitedskill,ourlimitedinterest.
InhisbookTheMasterGame,RobertS.deRoppsays:
Whatpeoplereallyneedanddemandfromlifeisnotwealth,comfortoresteem,butgamesworthplaying.Hewhocannotfindagameworthplayingisapttofallpreytoaccidie,definedbytheFathersoftheChurchasoneoftheDeadlySins,butnowregardedasasymptomofsickness.Accidieisaparalysisofthewill,afailureoftheappetite,aconditionofgeneralizedboredom,totaldisenchantment—“God,ohGod,howweary,stale,flatandunprofitableseemtomealltheusesofthisworld!”Suchastateofmind…isapreludetowhatislooselycalled“mentalillness,”which…fillshalfthebedsinhospitalsandmakesmultitudesofpeopleaburdentothemselves,theirfamilies,andtosociety….Seek,aboveall,foragameworthplaying.Suchistheadviceoftheoracletomodernman.Havingfoundthegame,playitwithintensity—playasifyourlifeandsanitydependedonit.(Theydodependonit.)FollowtheexampleoftheFrenchexistentialistsandflourishabannerbearingtheword“engagement.”
Thoughnothingmeansanythingandallroadsaremarked“NOEXIT,”yetmoveasifyourmovementshadsomepurpose.Iflifedoesnotseemtoofferagameworthplaying,theninventone.Foritmustbeclear,eventothemostcloudedintelligence,thatanygameisbetterthannogame.*
“Whatisagame?”deRoppasks.“Itisessentiallyatrialofstrengthbyrules.Rulesareessential.Iftheruleswerenotobserved,thegamewouldceasetobeagameatall.Ameaningfulgameofchesswouldbeimpossibleifoneplayerinsistedontreatingallpawnsasqueens.”
insistedontreatingallpawnsasqueens.”DeRoppgoesontosaythattheonlygameworthplayingiswhathecalls
“theMasterGame,”theaimofwhichis“trueawakening,fulldevelopmentofthepowerslatentinman.”
MostofthepeopleIknowarenotconfusedenough.Oh,theywouldalladmittoacertaindegreeoffrustration,doubt,alackof
certaintyastohowaparticularlyvexingproblemcouldbestbesolved.LikehowtogetJacktoshowupforworkontime.Orhowtogetthelandlordtofixtheairconditioner,which,nomatterwhat
wesayordo,blastsonatthecoldesttimeofthedayandshutsoffatthewarmest.*
But,asidefromthesepettyfrustrationsthatmanagetobollixupourdayfromtimetotime,tomywayofthinkingnoneofthatiswhatIwouldcallatrueconfusion.
Atrueconfusionmeanstotaldisorientation.MostpeopleIknowlivemomenttomoment,statetostate,voicingtheir
opinionsonjustabouteverything,and,intheprocess,confirmingtheirexistence—thecertaintyofthemselves.Wealldoit.It’samatterofhabit.Howelsewouldwegetonwithlife?
ButwhatI’msayingisthatmostofthepeopleIknowarenotconfusedenough.
Theyrarelystoptoseehowlittletheyactuallydoknow—aboutanything.Theyrarely,ifever,putthemselvesintoquestion.Theyrarely,ifever,gettothepointwheretheysuddenlyfeeltotallystupid.Indeed,theyrarely,ifever,allowthemselvestofeelstupid,becauseit’snot
onlyscarytofeelthatway,toseehowabsolutelystupidweareallconcerningjustabouteverything,butit’sdrop-deadterrifyingtocomeface-to-facewiththedark,deepabyssofhowlittleweactuallyknow,and,evenworse,withthealarming,unsettling,absolutelydevastatingfactthatmostofthetimewe’renotevenhere.
Ifweweretobehonestwitheachother,wewouldhavetoagreethatmostpeoplearelikethat.Infact,ifwereallywanttobehonestwitheachother,ifthetruthwerereallytoberevealed—youandIarelikethat.
Oh,yesweare.We’reallcertifiabledummies.What’sworse,we’reallmainlygone,absent,asleep,outtolunchmostofthe
time,habit-ridden,doinganautomaticdanceofsomeoneelse’schoosing,pushedalongfrombehind.
It’smycontentionthatifwewereworkinginagreatbusiness,someonewouldbetellingusthatallthetime.
Someonewouldberemindingusthatwe’renotconfusedenough,thatwe
Someonewouldberemindingusthatwe’renotconfusedenough,thatwehavetoomanystupidanswersandnotenoughquestionsoccupyingourminds.
Agreatbusinessmakessuretokeepeveryoneawake—itscustomers,itsemployees,itssuppliers,anditslenders.
True,it’sadifficult,oftentreacherous,pathtotake.Mostpeopledon’tliketobeconfused.Theydon’tliketobejostled;they
don’tliketofeeljarred;theydon’tliketohavesomeonesay,“Think!”asTomWatsonatIBMwasgiventodo;andtheyliketohaveopinionsabouteverythingthatgoeson.Don’twe?Don’twealllikethat,honesttoGod,deepdowninside,don’tweallliketobeauthorities?
Ontheotherhand,isn’tthereapartofus,howeversmallandtimid,thatlovestobeshaken?
Forit’sthatshocktoawaken,it’sthatcosmicraponthenoggin,it’sthatexistentialkickintheass,it’sthatprimordialshoutfromourstrugglingoldconsciencethatsays,“Wakeup!Wakeup!Wakeup!”thatliftsusoutoftheether,thatsnapsusoutofourlockstep,thatpinsustothewallofoursleepandmakesuslookatit,makesusopenoureyes,makesusbreathe,think,move,comealive!
Ihadasaxophoneteacheronce.AsImentionedearlier,hisnamewasMerle.Merlewasatyrant,atormentor.Otherthanthefactthathewasageniusat
thesaxophone,hehadnothingelsegoingforhim.Merlemusthaveweighedatleast300pounds.Hehadadrinkingproblem,
too.NotthatIeversawhimdrunk,thoughIdon’tthinkIwouldhaveknownitifhehadbeen.IwasonlynineyearsoldwhenIstartedstudyingwithhim.Butateachoneofmyhour-longSaturdaymorninglessons(therewereatleast400oftheminall:Istudiedwithhimforalmosteightyears),hedrankdownawholequartofbeer.Now,Iknowhehadotherstudentsbesidesme,aboutseveneveryday.ThatmeansthatMerledrankatleastsevenquartsofbeeradayfortheentiretimeIknewhim,andnotoncedidIseehimoutofcontrol.
(TheonlysymptomMerleeverdisplayedtomeofhispossiblealcoholproblemwasabrokenleghesufferedshortlyafterIbeganstudyingwithhim.Heworeacast,whichstayedwithhim,offandon,fortherestofhislife.Hetoldmethathe’dbeenjumpedbytwodrunksinabaronenight;oneofthemheldhim,whilethesecondproppeduphislegbetweentwochairs,andthenbeatitwithabat.Needlesstosaythelegneverhealed,anditfinallykilledhim—theleg,notthealcohol—butIdon’treallythinkitmatterswhichtoMerle.)
MerleandIhadanunderstanding.Thiswasthedeal:Merlecouldbeatthelivinghelloutofme(notliterally,
butfiguratively),andIwasfreetoquitifIdidn’tlikeit.Andheexercisedhispartofthebargainalmosteveryweek.
Andheexercisedhispartofthebargainalmosteveryweek.HewasthemostdifficultmanIhaveeverknowninmylife.Hewouldn’tallowmetogetawaywithanything.IfIletupalittleonmypracticing,heknewit.IfIplayedsomethingsloppily,orcarelessly,orthoughtlessly,hecalledme
onit,everysingletime,andmademeplayitoverandoverandoveragain,untilIgotitjustright.
Understand,toMerle,“justright”meantperfect,absolutelyright.Anditdidn’tmattertoMerleiftheentirehourwastakenupwithonesimple
phrase.That’swhatwe’ddo,thatonephrase,overandoverandoveragain,untilitfairlyflewfrommyfingersonitsown.
TogettoMerle’s,I’dtakeabusfromAnaheimtodowntownLosAngeles,thentransfertoasecondbusthatwouldtakemetoNorthHollywood,whereMerle’sstudiowas.Itwasalongtrip,upandback:atleastthreehoursofbusridingforeveryhourofsaxophonelesson.
Butitdidn’tmattertoMerlehowmanybusesItook,orhowfarIhadtocometostudywithhim,orhowyoungIwas,or,forthatmatter,howbigapainintheasshecouldbeasateacher.
NothingmatteredtoMerlebutthebargainwehadstruck:thatitwashislotinlifetoteachpeopletobecomegreatsaxophoneplayers,andthatpeoplestudiedwithhimforexactlythatreason.
AndtoMerle,anythingIdid,orfailedtodo,thatviolatedthatbargainwasgroundsforimmediate,anddrastic,action.
Ononeoccasion,onlytwominutesintothelesson,Merlecoollytoldmetopackupmysaxophoneandgobackhome.Thelessonwasover.WhenIaskedhimwhy,helookedatmeindisgust,andsaid,“Go.”
Ineverdidfindoutwhyheaskedmetogohomethatparticularday,butdeepdowninmyheartIknewthereason.
ItwasbecauseMerleknewIwasn’tworkingashardasIcould.MerleknewthatIhadalazystreakinmeamilewide.AndIknewit,too!Hewasn’tonlytellingmetogohomeearly,hewastellingmetolookat
myself,toputmyselfintoquestion,toaskmyselfwhetherornotIwasreallyseriousaboutbecomingagreatsaxophoneplayer.WasItakingmyselfasseriouslyasMerlewas?
WasIkeepingmypartofthebargain?Ihonestlycan’ttellyouwhatkeptmegoingbacktogetbeatupbyMerle
weekafterweek,monthaftermonth,yearafteryear.ButIthinkitwasthesoundofmysaxophone,asitchanged,andgrew,andmatured—asitbecamemusic.Its
depth,itsrange,itsrichness,itsdexterity,itspowerallmesmerizedme.IrememberhowIwouldstand,sometimesforhours,inthebathroomat
homewiththedoorlockedbehindmeandplaythesaxophoneagainstthetilesintheshower.
HowtakenbysurpriseIwouldsometimesbebytherich,fatsoundasitricochetedoffthetilesandthewallsandoutofthewindow,fillingmewiththemostextraordinaryfeelingofwonder,ofconnectionwithmyselfandtheworld.Howoldthatsoundseemedtobe—howalive!
WithoutMerle,itwouldn’thavehappened.Peoplewhoworkingreatcompanies—E-MythEnterprises—thinkabout
theminexactlythesamewayasIthinkaboutMerle.It’salove–haterelationship.
AnacquaintanceofminewhograduatedfromWestPoint,earnedanMBAfromWharton,andthen,asthoughthatweren’tenough,completedhissalesapprenticeshipatIBM,toldmethatnothinghehadeverdoneinhislifemeasureduptohisIBMexperience.
“ItwasthetoughestthingIhadeverdone,”hetoldmeproudly.“Withoutadoubt,noone,nothinghasevertestedmeascompletelyasIBM.Ilovedthatplace.”
AfriendofminewhoworkedintimatelywithWaltDisneysaidofhim,respectfully,“Hewasamonster.NoonewastougherthanWalt.NooneexpectedmoreofyouthanWalt.Noonerodeyouashard,squeezedouttheverylastjuice,keptdigginguntilhefoundthatverylastnugget.Oncehegotitinhismindwhathewantedtodo,Waltwouldn’tletanyonerestuntiltheyhaddoneit.”
TheysaythesameaboutRayKroc,andRossPerot,andFredSmith,andSteveJobs,andthecompaniestheycreated.Theylovedthemanandtheyhatedhim;theylovedthecompanyandtheyhatedit.
SoitseemsthatE-MythEnterprises—indeed,allcompanies—takeonthepersonalitiesofthepeoplewhocreatethem.
Andthatiswhysofewcompanieshavebeensuccessfulintheirattempttodevelopmanagersintoentrepreneurs.
It’sbecausepersonalitieslikeTomWatson’s,WaltDisney’s,RayKroc’s,RossPerot’s,andSteveJobs’saresouncontrollable.ThathadtobethereasonwhyJobswasbroughtbackasApple’sCEO.
Theyareaforcealltheirown,drivenfromwithin,unmanageable,chaotic,solitary,insatiable—possessed,youmightsay—exactlytheoppositeofwhatittakestobeagoodmanager.
Youdon’tfindpeoplelikethatworkinginotherpeople’scompaniesforlong.
long.Thatiswhythecompaniestheycreatedemandmoreoftheirpeoplethan
othercompaniesdo,becausepersonalitiesliketheirsdemandmoreofthemselvesthanotherpeopledo.
Ifmysaxophoneteacher,Merle,had,byanaccidentoffate,takenupbusinessinsteadofthesaxophoneashiscalling,I’mcertainhiscompanywouldhavemirroredtheonesI’vejustmentioned.AndthatisbecauseMerleexpectedmoreofhimselfandmoreofhisstudentsthananyonehasarighttoexpectintheordinaryworld.
Intheordinaryworld,fewpeoplehavetherighttoexpecttobecomegreatsaxophoneplayers.
InMerle’sworld,nothinglesswoulddo.Intheordinaryworld,fewpeoplehavetherighttoexpecttocreateachain
ofnearly32,000restaurants,alloperatinginanidenticalfashion,withthesamerigorousstandards.
InRayKroc’sworld,nothinglesswoulddo.Companiesliketheseoftenappearrigidfromtheoutside.That’sbecause
theylivebyrules.Walt’srules,orRay’srules,orTom’srules,orSteve’srules.Toughrules,rulesforatoughworld,whereordinarypeopleare
unaccustomedtoplaying.Despiteoutwardappearances—despitetheseemingrigidityoftheirrules—
thetrulydifficultcharacteristicofE-MythEnterprisesforordinarypeopletotake,isn’tthattheyplaybythetoughrules,butthattheyareavidbreakersoftheveryrulestheymake.
Therulesareconstantlychanging.E-MythEnterprisesarecontinuallyrewritingtheirowntraditions.Theyarecontinuallycreatinganewgametoplay.Andthatisbecausethecreatorsofthesecompaniesarecontinuallyasking
questionsabouthowtogetbetter;theyarecontinuallyrisingtotheirownexpectations;theymarchtothebeatofadifferentdrummer.Marchingtotheirowninnertuneandlivingtoameasurethatcomesfromjustaroundthecorner,outofreach,outofsight,theyarecontinuallyinastateofbreakingupandreforming,andtheydothisasamatterofbeing,asawayoflife;theycouldn’tdoitanyotherway.
Buttheirenergy,theircreativity,theirspirit,theirdrive,theirstamina—asessentialasthesetraitsare—aren’tenough.Iftheywere,therewouldbemanymoreE-MythEnterprisesthanthereare.
No,itseemsalsothatE-MythEntrepreneurspossess,toadegreethatputstherestofustoshame,thefiveessentialskillsIspokeaboutearlier.
therestofustoshame,thefiveessentialskillsIspokeaboutearlier.Theyconcentrate,discriminate,organize,innovate,andcommunicateina
waythatputsfocus,tension,order—apresence—attheheartoftheenterprisethatcausesittoalmostshimmerwithecstasyasitgoesitsunusualway.
Itisthatshimmer,thatbrightness,thatradiance—arethesewordstoostrong?—thatalmostinstantlydistinguishesanE-MythEnterprisefromalltheothers,fromtheinsideandfromtheoutside—intheheartsofthosepeoplewithwhomitcomesintocontact.
Itisthefactthatgameismoreimportanttosuchcompaniesthantherewardthatexcitespeoplesomuch.
Butthatstillisnotenough.ThereissomethingelseaboutE-MythEnterprisesthatendowthemwith
suchatangibledifference.Anditisthatthesebusinesses,theseE-MythEnterprises,arecreated,notbybusinesspeople,notbyso-calledentrepreneurs,but—andthereisnootherwaytosayit—bychildren.
TheseE-MythEnterprisesarecreatedbytheyoungestpartofus,notthemostadult.
Theyarecreatedbythatpartofusthatbelievesithastherighttoexpecttheworldtochange,togiveuseverythingwewant,exactlyasweimagineit.
Notthemethodicalpart,thedependablepart,thereliablepart,theresponsiblepart,thegrown-upinusall,thepartoneexpectsthemanagertoplay.
Nottheadultwhohaslearnedtolimithisorherexpectations,butthechildwhowantsitall.
IthinkofJohnAnderson,andIimmediatelyknowthatitwasthechildinhimwhocreatedthat1947Fordcoupe.
IthinkofMerle,andIimmediatelyknowthatitwasthechildinhimwhoexpectedsomuchtocomefrommyhorn.Attimes,Iremember,hewouldstandbesidemewithobviousimpatienceasIwasplayingmyhornandactuallystamphisfeet,that’sright,jumpupanddown,asifbystampinghisfeethecouldforcethesoundoutofmyhornthatIwasincapableofforcingoutmyself.Hesomuchwantedtohearthatsound!
Whodoesthatbutachild?NowondertherearesofewE-MythEnterprisesaround.It’sbecausebusiness,asitisordinarilyplayed,issounattractivetomost
children.Itissuchadeadandemptygame.Letmetellyouthestoryofanothergreatbusiness—anotherE-Myth
Letmetellyouthestoryofanothergreatbusiness—anotherE-MythEnterprise.
Letmegiveyouaprofoundexampleofhowtheemotionalpreferencesofpeoplehavebeensowellserved,andhowthisqualityalonehasenabledonesmallbusinesstothriveunderconditionsthatwouldputmostbusinessesunder.
LetmetellyouthestoryaboutawomannamedMaryandavocationalschoolinthefieldofmassagetherapycalledTheHolisticHealthInstitute.
ToMaryConnerBrown,settlingdownwasacolorofadifferentkind.Puttingitmildly,shehadledatraveler’slife.FromthemomentMarygraduatedfromtheUniversityofNorthCarolinawithabachelor’sinpsychology,shehittheroad,andforthenextfiveyearssherarelystoppedinanyoneplaceformorethanaminuteandahalf.
AsMaryputsit,shewasn’treallylookingforanythinginparticular,shewasjustrestless.
Shehadthisburningdesiretodosomething,tomakesomekindofamarkontheworld,tocreateanimpactthatwouldcausepeopletosay,“Marywashere.”Ittookonaphysicalform,starting,youmightsay,withherfeet—theyjustwouldn’tstop.
Shortlyaftergraduating,Maryheardabout,soughtout,andimmediatelyjoinedacommuneinVirginiacalledTwinTrees,whichwasbuiltontheprinciplesofB.F.Skinner’sWaldenTwo.There,Maryalternatelyworkedontheconstructionteamasaplumber,thekitchenteamasacook,andthechildcareteamasasurrogatemother.
Maryremembersthecommuneas“apowerfullytransformationalexperience.”
“Itwasatruematriarchy,createdbywomen,forwomen,aplacewhere,forthefirsttimeinmylife,itbecameabundantlycleartomethatIcoulddamnwelldoanythingIwantedtodo.
“HereIwasworkingasaplumber,forGod’ssake,whenjustafewmonthsbeforeIcouldn’thavetoldyouthedifferencebetweenapipewrenchandahammer!
“AtTwinTrees,myrestlessness—whatIthoughtofatthetimeasmySearch—becamefocusedlessonthequestionofwhattodowithmylife,thanonwhatdoIwanttodowithmylife?
“Therealizationthattherewasahugedifferencebetweenthosetwoquestionsopenedupawholenewworldtome.”
Itwasn’tlong,however,beforeMarydiscoveredthat,despiteitsloftyambitions,TwinTreeshadbecomeitsownsortofprison,aplacesocharismatic,soseductive,yetsooppressive,thatsheknewshehadbettergetout.
AsMarytellsit,“Itwasincredibleformetodiscoverhowpowerfulahold
AsMarytellsit,“Itwasincredibleformetodiscoverhowpowerfulaholdthecommunehadonme.Theverythingthatempoweredmethere,begantocontrolme.Itwaslikeanarcotic.SomethinginmetoldmethatifIstayedmuchlonger,Iwouldfinditdifficult,ifnotimpossible,toleave.
“TheverynextdayIliterallyescapedinavisitor’scarbyhidingonthefloorbehindthedriver’sseat!Theguywasshockedtofindmethere,butagreedtodropmeoffsixtymilesawayinVirginiaBeach.WhyIchoseVirginiaBeachisstillamysterytome;Ithinkitwastheonlyplacethatcametomind.Itamazesmetothisday.Inonlyacoupleofhoursmyentirelifehadcompletelychanged!HereIwas,atthreeo’clockonaThursdayafternoon,inastrangetown,withnoidentity,nojob,noplacetolive,only$18tomyname,andabsolutelynoideaofwhatIwasgoingtodonext.Ilovedit,andIwasscaredshitless!Itwaslikewakinguponastrangeplanet.”
ThatveryafternoonMaryrenteda$15aweekroominaboardinghoteland,withonly$3lefttohername,beganhustling“survivalmoney,”doingoddjobsonthestreetsofVirginiaBeach,wonderingwhatthenextstepinherodysseywouldbe.
ThestreetbecameanotherfirstforMary.Herresilienceandresourcefulnessweretestedoverandoveragain.Unlikehome,college,andthecommune,therewerenorulesonthestreet,
noritualtowhichMaryhadtoconform.Noonetoldherwhatshehadtodo,orthatshehadtodoanything.
Shemadeitupasshewentalong,creatingherownrules,herownaims.Everydaybecameanewopportunity,anewproblem.Ifshewasgood—or
lucky—shegotwork;ifshewasn’t,shedidn’t.Afaststudent,shequicklylearnedthedifferencebetweenthetwo.Itquickly
becameapractice.Itgavehersomethingofvaluetoteach.Shewasdevelopingherstyle.
Acompanyisonlyasaliveasitspeople.Thevitalityoftheproductofacompany,whatitsells—its“commodity”—
alwaysreflectstheemotionalvitalityofitspeople.Putmoredirectly,dumbcommoditiesarecreatedbydumbpeople.Ithinkitisalsotruethatcommoditiesmature—becomedumber—notonly
astheyoutweartheirusefulness—forexample,theirperceivedvaluetotheircustomer—butasthevitalityofthepeoplewhocreatethemwanes,disintegrates,becomeslessintense,lessjoyful.
Ontheotherhand,theemotionalvitalityofacompany’speopleisalwaysafunctionoftheemotionalvitalityofthefounder,orCEO,ofthatcompany.
AnoldSicilianexpression,“Thefishstinksfromtheheaddown,”tellsus
whereoneshouldlookforthefailureofacompanytothrive.
It’sareliableaxiomthatdeadCEOscreatedeadcompanies.CEOswhoaresatisfiedwiththemselvescreateself-satisfiedcompanies.DullCEOscreatedullcompanies.BelligerentCEOscreatebelligerentcompanies.AdventurousCEOscreateadventurouscompanies.FearfulCEOscreatefearfulcompanies.Whatgoesaroundcomesaround.
Mostcompaniesfailbecausethereissomethingmissing—somekeyandcriticalcomponentleftout.
TheCEOisadventurousbutlazy,sothedetailsdon’tgetworkedout.TheCEOispassionatebutstupid,sothereisforce,butinthewrong
direction.TheCEOisdissatisfiedwithhimselforherselfbutplacesblameonhis
orherpeopleinstead,so“thesearch”turnsintoawitchhunt.OrtheCEOisageniusbutcrazy,sotheenergyofhisorhergeniusis
transformedintoastewpotofconfusion.
Considerthis:ifyouwanttounderstandSteveJobs,looknofurtherthanApple.IfyouwanttounderstandHowardSchultz,takeagood,longlookatStarbucks.Conversely,lookatAppletounderstandJobs;lookatStarbuckstounderstandSchultz.
What’sgreatabouttheseCEOsiswhat’sgreatabouttheircompaniesandviceversa.
Thisgamewecallbusinessisadelicate,delicate,yethighlyconnectedthing.
Forthenextfouryears,MaryBrownstumbledfromoneadventuretoanother,movedmorebyinstinctthananythingelse.
Astrangeronthestreetgotherajobinabeerbar“slingingsuds.”Achanceencounterinthebarturnedintoaroommateandarelationship
aboardathirty-five-footsailboataptlynamedChanceEncounter,inwhichsheandhernewfriendsailedtotheBahamas,theVirginIslands,theFloridaKeys,andtheTortugas,workingastheywent,divingforconch,charteringout,orwhatevershowedup.
AsMarydescribesit,“Whateverhappened,happened.Somethinginmecravedexperience—newimpressions.SomehowIknewthattheonlywayIwouldgrowwasifIletgoofmypastandwalkedwillinglyintoanunknown,anunforeseeable,anuncontrollablefuture.What’smosttrueofthattimeinmylifeisthatIsimplyallowedeventstoshapeme.IwassmartenoughtoknowthatIdidn’tknowenoughtoshapeevents.It’snotthatIwasfearless,asalotofpeoplethinkwhenItellthemaboutthosetimes,butthatIsimplymaderoomformyfearandIestablishedaworkingrelationshipwithit.”
ItwasduringthatfreewheelingtimethatMary’sschoolwasborn.Whocansaywhythingshappen?Whocansaywhereanythingbegins?Butit’sinstructivetotry.It’sofvaluetolookfororigins,beginnings,wherethingsbegintogooffor
ontrack.Foritisundeniablethateverysinglething,everyevent,everycondition,hasitsbeginning—wasstarted,orwasborn,orwasignited—atsomesinglepointintime.Whetherornotweknowwhen,where,orwhy,itdidhappen,itdidstart,anditdidcometogether.
Butthemostinstructiveoriginsarenotinthepast;theyarehappeningrightnow.
Newthings,newventures,newcompanies—newlives—arecontinuallybeginning.Atthisveryinstant—inthismicrosecond,inthisflashofcontractedtime—somethingnewissettingitsfootdownonatotallynewpath,issuddenlydecided,ischartingitscourse,iscreatingafutureofwhatwillalsobecomepastandpresentevents,eachexistingontheveryedgeoffutureinstants,futurebeginnings,andfutureendings.
Itisinthemiracleofoccurrence—thislivingmoment—thateverythingbegins,thateverythingends,evenbusinesses,astheyhavebegun,andended,foralltime.
SoIthinkthatTomPeterswaswrong.
It’snotthepursuitofexcellencethatmatters,it’sthatwearepursuedbyexcellence.
It’sthatthequestionofexcellenceresidesasapossibilityineverythingwedo.
It’snotthatthegasstationiscleanthat’simportant,it’sthatsomebodywaspossessedbytheneedtocleanit.
It’sthefireattheheartoflifeitself,thisexcellence,thateitherpossessesusornot.
Anditisthisinstantthatithappens,notinthepast,notinthefuture,butattheveryinstantofchoice,now,asourbusinesses,asourverylives,arebeingshaped.
Whatconcernsme,whatshouldconcernusall,Ithink,ishowfewofusseemtobeavailable—orwilling—tobepossessed.
ItisastonishingtothinkthatMary’sbusinesswasstartedwithabookaboutmassageandahandfulofclients,bothofwhich(thebookandtheclients)weregiventoMarybyamassagetherapyfriendwhodecidedtoleavetown.
Maryreadthebookandmassagedtheclients,andthusherschoolwasborn.HowMaryBrowncameupontheideaforherschoolisn’timportant.You
couldn’treplicateitevenifyouwantedto.Thesimplematteristhatshewaspassionatelyseekingsomething,andshefoundit.
Don’tmisunderstandme,itwasn’ttheschoolshewasseeking—thebusinessneveris,notforDisney,notforKroc,notforSmith,notforPerot,notforJobs,notforMary.No,thebusinessissimplythemediumthroughwhichsuchpeoplehopetofindwhatthey’relookingfor.
ForMaryBrown,theschoolwas,andstillis,amirror—areflectionofhertrueself.
Sheseesherselfiniteverysingleday.Itisaproductofwhosheis.Itisacontinuingcommentaryonwhatshehaslearned,andonwhatshe
hasn’t.Itis—likethestreetsofVirginiaBeach—adifficultplacetogotosleep.
Severalyearsago,Mary,likealltheotherownersofvocationalschoolswithstudentaidprogramsinherstate,wasperemptorilynotifiedbythestatethattherulesforsuchschoolswereabouttobechanged.
Changed,however,istoomildawordforwhatthestatehadinmind.Whatthestatehadinmindwasarevolution.Thisrevolutionwasgoingtotakeplaceimmediately,andanyonewhodidn’t
complyimmediatelywiththestate’snewruleswouldbefoundinviolationandcouldbeputoutofbusiness.
Thestatehaddecidedtocreateanewgame,agamecalled“Trythisoneonforsize.”
Justafewexamples:Whatthestatesaidwasthatsuchschoolscouldnolongerpaytheirsales
staffcommissionsforenrollmentsuntilthestudentstheyenrolledgraduatedfromschool,forcingschoolstocreateatotallynewcompensationsystemfor
fromschool,forcingschoolstocreateatotallynewcompensationsystemfortheirsalespeople(atgreatadditionalexpensetotheschool)andtaketheriskoflosingalltheirsalesstaffatthesametime.
Thestatedidn’tcare.Whatthestatesaidwasthatanystudentonfinancialaidhadtherighttodrop
outofschoolatanytimeandreceiveafullproratarefundofhisorherunearnedtuition,forcingschoolstorethinktheirentirefinancialstrategy,theircapitalrequirements,theirfinancialaidprograms—withoutanydatatosupporttheirconclusions.
Thestatedidn’tcare.Whatthestatesaidwasthattheschoolhadtoguaranteethatatleast70
percentofitsgraduatingstudentswouldbefullyemployedinthefieldforwhichtheyweretrainedwithinsixmonthsofgraduating,ortheschoolwouldbeindefault.
Canyouimaginewhatwouldhappentostateuniversitiesandcollegesifthesamerulesappliedtothem?Thatallpsychologystudentswhohadreceivedfinancialaidhadtobeemployedaspsychologistswithinsixmonthsofgraduation;thatallmusicstudentswhohadreceivedfinancialaidhadtobeemployedasmusicianswithinsixmonthsofgraduation;thatallteachingstudentswhohadreceivedfinancialaidhadtobeemployedasteacherswithinsixmonthsofgraduation,andthatallengineeringstudentswhohadreceivedfinancialaidhadtobeemployedasengineerswithinsixmonthsofgraduation?
Doyousupposestateschoolscouldsurviveunderthoserules?Couldyourbusiness?Whatifthestaterequiredyoutoguaranteeyourproductorservice?Whatifthestatedemandedthatyouprovideyourpeoplewitha
guaranteeofsuccesswhenyouhirethem?Whatifthestatetoldyouhowmuchcapitalyourbusinessneededto
haveinrelationshiptoyourrevenueinorderforyoutobepermittedtostayinbusiness?
Whatifthestatetoldyouwhatyournetprofitneededtobeinorderforyoutobepermittedtostayinbusiness?
Whatifthestatetoldyouwhatyoucouldsay,andwhatyoucouldn’tsay,toyourcustomersinyourmarketingprocessinorderforyoutobepermittedtostayinbusiness?
Well,thestatesaidthesethings,andmuchmore,tothevocationalschoolsdoingbusinessthere.Butwhatthestatedidn’tsaywashowitcametothese
doingbusinessthere.Butwhatthestatedidn’tsaywashowitcametothesebrilliantconclusions.
Instead,whatthestatedidwastoshovedozensofsmallvocationalschoolstotheverybrinkoffinancialdisasterandputmanyothersoutofbusiness.
Asyoumightimagine,mostoftheschools,smallandlarge,weresimplyunpreparedandthereforeunabletocomply.
Butontheverydaywhenallschoolswereexpectedtobeincompliance,withonlytwoweeks’notice,Mary’sschoolhadfulfilledeverysinglerequirementimposedonit.
Shehaddonetheimpossibleinrecordtime.Marywasabletoaccomplishtheimpossibleinrecordtimebecauseher
schoolpossessedsomethingfewbusinessespossess:thepeoplewhoworkedforher,boughtfromher,soldtoher,andloanedhermoneylovedherandtheschoolshehadcreated.
Theythoughtshewasincredible,and,thesimpletruthofitis,theywereright.
Maryhadcreatedawonderoutofnothing.Herschoolwasstartedinasmall,shabbyhousewithsixstudents,nocapital,
andabsolutelynobusinessexperienceofanykind.Butsheknewaboutpeopleandwhatittooktosurviveonthestreets.
Moreimportantly,sheknewthatshewantedtoteachherstudentsmorethanaskill.Shewantedtoteachthemwhatshehadlearned,andshewantedtoteachthemwhatshehadn’t.
Shewantedtoteachpeoplethatitwaspossibletohaveworktheyloveandtohaveitontheirownterms.
Butshealsowantedtoteachpeoplewhatittakestomakeitontheirown—tobecomeindependentofthesystem,togrow,andexpand,andthrive,asshehad,totakerisks,asshehad,totestthemselves,asshehad—withoutanycertainty,oranyguaranteewhatsoeverthattheendwouldjustifythemeans.
Marywasafirewithherconvictionsandabsolutelyinspiredbywhatshehadtodo.
Andwhatshewasabouttodowaslearn.
TherearesevenrulesMarylearnedaboutbuildinganemotionallyvitalbusiness.
ThefirstruleMarylearnedisthatpeopleneedorder.Theyneedtoknowthatthereisastructure,alogic,afoundation,aclearsetofstandards,of
principles,afairnessaboutthebusinessandthejobtheyaretheretodo.
ThesecondruleMarylearnedisthatpeopleneedtofeelheard.Theyneedtoknowthattheircontributionisimportant,thatnomatterwheretheystandinrelationshiptothebusiness—asemployee,ascustomer,assupplier,aslender—whattheywantmatters,andthatthereisachannelthroughwhichtheycanexpresswhatmatterstothem,andthatthechannelisalwaysopen.
ThethirdruleMarylearnedisthatpeopleneedtofeelconnectedtosomethingbiggerthanthemselves.Ifthebusinesshassmallaims,issimplyinterestedinsurviving,instayinginbusiness,itwillnotsustainthem,itwillnottouchthem,itwillnotengagethem.No,thebusinesshastotakeonsomething—nomatterwhatkindofabusinessitis—inanimportantway.Ithastobewillingtotiltatwindmills—thebigger,thebetter.
Peoplearedyingforwantofsomethinglargerthanlifetobelievein,torallyaround,tosupport.Couldthatbewhyyoungmenandwomenvolunteertoserveinthearmedforces,evenintimesofwarorunrest?
ThefourthruleMarylearnedisthatpeopleneedtohaveapurpose.Theyneedtohaveaplan.Theyneedtobegoingsomeplace—someplacespecific,inaspecificamountoftime.Withoutapurpose,peoplebegintowallow.Theybecomesuspendedintime.Theybecomeadragoneachother,begintofeelvictimized,losetrackofthetime,gotomoviesandforgetwhatthey’veseen.
ThefifthruleMarylearnedisthatpeopleneedtofeelthatwhattheyaredoinghasmoralweight.Thebusinesshastobeconcernedaboutwhatisright:whatisrightforthemselves,whatisrightforothers,andwhatisrightfortheworld.Thebusinesshastooperatewithconscience.Withoutconscience,abusinessisadragonwhatlittleself-esteempeoplealreadypossess.
ThesixthruleMarylearnedisthatpeopleneedtofeelthatwhattheypersonallydoisimportant.Theyneedtofeelthattheenterprise,withoutthem,somehowwouldn’tmatterasmuch;thatwhentheywalkinthedoor,somethingvitalisaddedtothebusiness,somethingonlytheycanbringtothetable.Theyneedtofeelthatiftheywerenolongerthere,thebusinesswouldn’tbethesame.
TheseventhruleMarylearnedabouttheemotionalhealthofabusinessisthatpeopleneedtofeelthatthepeopletheyassociatewithlovethem.That,nomatterwhat,peoplecare.
ThewordsastudentofMaryBrown’swroteexpressitall:
MaryC.Brown,whatalady!Shebeatsmybrainoutdaily.She’srough,she’stough,Butsheknowsherstuff.(Andshecancharmthesocksoffababy!)Iloveyou,MaryC.Brown!
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
(ListentothePodcastversionatMichaelEGerber.com)
Thesecondcategoryofpreferenceistheemotionalideal.Therearesevenrulesthatwillhelpyoubuildanemotionallyvitalenterprise.
1.Peopleneedorder.Theyneedtoknowthatthereisastructure,alogic,afoundation,aclearsetofstandards,ofprinciples,afairnessaboutthebusinessandthejobtheyaretheretodo.
2.Peopleneedtofeelheard.Theyneedtoknowthattheircontributionisimportant,thatnomatterwheretheystandinrelationshiptothebusiness—asemployees,ascustomers,assuppliers,aslenders—whattheywantmatters,thatthereisachannelthroughwhichtheycanexpresswhatmatterstothem,andthatthechannelisalwaysopen.
3.Peopleneedtofeelconnectedtosomethingbiggerthanthemselves.Ifthebusinesshassmallaims,issimplyinterestedinsurviving,instayinginbusiness,itwillnotsustainthem,itwillnottouchthem,itwillnotengagethem.No,thebusinesshastotakeonsomething—nomatterwhatkindofabusinessitis—inanimportantway.
4.Peopleneedtohaveapurpose.Theyneedtohaveaplan.Theyneedtobegoingsomeplace—someplacespecific,inaspecificamountoftime.Withoutapurpose,peoplebegintowallow.Theybecomesuspendedintime.Theybecomeadragoneachother,begintofeelvictimized,andlosetrackofthetime.
5.Peopleneedtofeelthatwhattheyaredoinghasmoralweight.Thebusinesshastobeconcernedaboutwhatisright:whatisrightforthemselves,whatisrightforothers,andwhatisrightfortheworld.Thebusinesshastooperatewithconscience.Withoutconscience,abusinessisadragonwhatlittleself-esteempeoplealreadypossess.
6.Peopleneedtofeelthatwhattheypersonallydoisimportant.Theyneedtofeelthattheenterprise,withoutthem,somehowwouldn’tmatterasmuch;thatwhentheywalkinthedoor,somethingvitalisaddedtothebusiness,somethingonly
theycanbringtothetable.Theyneedtofeelthatiftheywerenolongerthere,thebusinesswouldn’tbethesame.
7.Peopleneedtofeelthatthepeopletheyassociatewithlovethem.That,nomatterwhat,peoplecare.Someofyoumightarguethattheemotionalidealisnotasimportantasgreatproducts,greatservices,andcompetentmanagement.Trustme,itisatleastasimportant.
CHAPTERSIX
THETHIRDCATEGORYOFPREFERENCE:THEFUNCTIONALIDEAL
I’venoticedthatpeoplewhohaveneverworkedwithsteelhavetroubleseeingthis…thatthemotorcycleisprimarilya
mentalphenomenon.
—RobertM.Pirsig,ZenandtheArtofMotorcycleMaintenance
Thatacompanylooksgreatandfeelsgreatisstillinsufficientforacompanytoactgreat.Foracompanytoactgreat,itmustthinkinasignificantlydifferentwayaboutwhatitdoesandhowitdoesitthanmostcompaniesarepreparedtodo.Thatisbecausemostcompaniesarepeople-orientedratherthanprocess-oriented.
People-orientedcompaniesfocustheirattentiononwhoisdoingthework.Process-orientedcompaniesfocustheirattentiononwhethertherightwork
isbeingdone,andmoreimportantly,iftherightworkisbeingdone,howitisbeingdone.
People-orientedcompaniesdependon“good”peopletoproduceresults,wheregoodisdefinedasexperienced,successful,self-motivated—inshort,peoplewhocanbedependedupontoproducegoodresults.Someoneisalwaysshouting,“Findmesomeonewhoknowshowtogetthejobdone!”inapeople-orientedcompany.
Process-orientedcompaniesdependongoodprocessestoproduceresults,wheregoodisdefinedastheprocess’sabilitytoproducetheverybestresultsinthehandsofinexperienced(orlessexperienced)peoplethanthecompetitionneedstoproducethesameresults.
It’svaluabletonotethatmostofthepeople-orientedcompaniesIhaveknown(andIhaveknownthousandsofthem)arealmostalwaysintolerablyself-righteousabouttheirgreatpeopleorientation(“We’reapeoplecompany!”),
righteousabouttheirgreatpeopleorientation(“We’reapeoplecompany!”),wheninfacttheyareusuallyfarlesspeople-orientedthantheywouldhaveusbelieve.
Whensomethinggoeswronginapeople-orientedbusiness,someoneinvariablyasksthequestion“What’swrongwithJack?”
(It’sasinequanonthatinpeople-orientedcompanies,somebody’salwayslettingthecompanydown.Ifthedefinitionofgoodpeopleispeoplewhoproducegoodresults,logicwouldtellusthatwhenpeoplefailtoproducegoodresults,they’renotgoodpeople.Notacheerypositiontobein.)
Whensomethinggoeswronginatrueprocess-orientedcompany,thequestionthatinvariablyisaskedfirstis“What’swrongwiththeprocess?”
(“Jack”isn’ttheproblem;theprocessis.)Onemightargue,“Ah,yes,butwhocreatestheprocessinthefirstplacebut
‘good’people?”AndIwouldrespond,“Peopleusingaprocess!”Apeople-orientedcompany’sstrategyisalmostalwaysdifferentthana
process-orientedcompany’sstrategy.Apeople-orientedcompanyfirstlooksforthebestpersonforthejob—
somebodywhoalreadyknowshowtodoit,hasdoneitverysuccessfullyinthepast,andisself-motivatedtodoit.
Shouldsuchapersonbefound,thepeople-orientedcompanywillmostoftenprovidethenewpersonwithan“orientation,”ageneralizedreviewofhousekeepingprinciples—“Thisiswhereyougetthegrease;thisiswherewekeepthepencils;thisiswhereyoucanbuysomecoffee;thisisFred;thisisJocko;thisisMyrtle”—thenleavesthenewpersontogetonwithwhatthecompanyhiredhimorhertodo,tofindhisorherownway,todothejobthebestwayheorshecan.
Failingtofindthebestperson,apeople-orientedcompanywillresorttoteachingas“good”apersonasitcanfindtheskillsneededtoperformeffectivelyonthejob,thenshowhimorherwherethegreaseis,wherethepencilsare,whereheorshecanbuysomecoffee,thisisFred,thisisJocko,thisisMyrtle,andfinallygivethenewperson“theroom”todecidehowheorshepreferstodothejob.
(Skillsmustbedifferentiatedherefromprocess,inthatskills,astheyarecommonlytaughtinpeople-orientedcompanies,arethosebasicabilitiesusedbyallcompaniesofthesamecategory—forexample,allautorepairshops,orallpoodle-clippingshops,orallinsurancecompanies—togetthejobdoneinanundifferentiatedway.Process-orientedcompanies,incontrast,designprocessesthatareuniquetotheircompanysoastogetthejobdoneinawaythatpreferentiallydifferentiatesthatcompanyfromitscompetitors—faster,smoother,lessexpensive,withauniqueflourish.)
smoother,lessexpensive,withauniqueflourish.)Process-orientedcompaniesknowthatthediscoveryofabetterwaytodo
somethingissignificantlymoreempoweringthanfindingabetterpersontodoit.Process-orientedcompaniesknowthatyoucanalwayslosethebetterperson
(indeed,inthisdayandage,youalwaysdo!),butthatit’smuchmoredifficulttoloseabetterprocess.(Peoplearen’ttheexclusivepropertyofyourcompany,butyourprocessescanbe.)
Inshort,process-orientedcompaniesknowthatabetterprocesscanbeliberatinginthatithasthepowerofturningordinarypeopleintoextraordinarypeople.(Thebestpeoplecanbealimitingfactor,inthattherearesofewofthem,youhavetopayapremiumtogetthem.Onceyoudogetthem,theycanholdyouforransomiftheydecidethey’reboredwiththepresentarrangement.Orifit’sjustnotquiterighttoday.Oriftheyneedavacationyouhadn’tplannedfor.Orforanyreason—oftheirs—atall.Thentrytoreplacethem.)
Now,Iknowthatifyou’rewhatwouldbecategorizedonthejobasa“bestperson”thiswholeconceptmayoffendyou,andIapologizefortheoffense,butthegoodnewsisthatagreatprocessinthehandsofagreatpersonisawondertobehold.
WitnessHamletandLaurenceOlivier.WitnessBeethoven’sFifthSymphonyandLeonardBernstein.WitnessEricClaptonandawell-tunedguitar.WitnessBrettFavre,orTomBrady,orPeytonManningandafootball.Witnessastaratanything,andyou’llunderstandwhatImean.
Everygreatpersonusesagreatprocess.Thequestionhereis,whoownstheprocess?Foraprocesstobeliberating,itmustliberateeveryone—theemployees,the
customers,thesuppliers,andthelenders.Suchprocess-orientedcompaniesasSupercuts,LensCrafters,PizzaHut,
Subway—and,ofcourse,McDonald’s,theWaltDisneyCompany,Apple,andFedEx—andmany,manymore,allproduceliberatingresultsfortheiremployees,theircustomers,theirsuppliers,andtheirlenders.
Theprocessassuresallofthemameasureofpredictabilitythatfewbusinessesproduceforanyone,letaloneforallfour.
Supercutspossessesaprocessforcuttinghairthatenablesabeginnertoproduceaprofessionalresultinshortorderathalfthepriceaprofessionalmustcharge.
LensCrafterspossessesaprocessforcreatingqualityeyeglasses“inaboutan
LensCrafterspossessesaprocessforcreatingqualityeyeglasses“inaboutanhour”forpeoplewhosimplycan’t,ordon’twantto,waitanylonger.
FedExpossessesaprocessthatvirtuallyguaranteessatisfiedcustomerswithitsamazingrecordofreliabilityanditswillingnesstomakethedelivery,nomatterwhat.
Alldifferentiatethemselvesnotbythepeoplewhoworkforthem,butbytheprocessthroughwhichthesepeopleproduceapredictableresulteachandeverytime.
Andbecausetheypossessaprocessthatworks,theirpeopleareperceivedtoworkbetterthanmost.
Thinkaboutitthisway:thereisawaytodoeverything.Andifthatistrue,thentheremustbeabetterwaytodoeverything.Andifthatistrue,thentheremustbeabestwaytodoeverything.Nottheonlyway,mindyou,notabsolutelyandforeverthebestway.Butthe
relativelybestway,thewaythatproducesthebestresultsasperceivedbythepeoplewithwhomitinteracts,thewaythatperformsbestinrelationshiptoalltheotheroptionsavailableatthistimeandfortheforeseeablefuture.
Thatiswhatprocess-orientedcompaniesareallabout,discoveringthebestway.
Butwheretheystartisnotwithhowtodoit,butwiththequestion“Whatisthebestthingtodo?”
Andthequestion“Whatisthebestthingtodo?”canonlybeansweredbyunderstandingwhatpeoplewantmost.
Abestwayprocessisdiscoveredbyansweringthefollowingquestions:
Whatonethingwouldourcustomers,employees,suppliers,andlendersmostlikeustodoforthemthatweandourcompetitorscan’tcurrentlydo?
Hasanyoneevertriedtodothisthing?Ifyes,whydidtheyfail?Whatwoulditmeantousifwecoulddoit?Whycan’twedoit?Whatwouldbethebestwaytodoit?Howmuchwoulditcostustobeabletodoitthebestway?Isitworththecost?Ifyes,whatwouldbetheimpactonourcustomers,employees,
suppliers,andlenders?Ifnegativeforanyorall,howwouldweovercomethatnegative?Ifwecan’tovercomethenegative,dothebenefitsoutweighthenegative
aspects?
aspects?Ifwecan,shouldwedoit?
Thebestwayisalwaysthewaythateliminatestheprimaryfrustrationexperiencedbyanyoneofthefourprimaryinfluencersofabusiness.
Whatistheprimaryfrustration?
Justwhatyoumightthink.
Theprimaryfrustrationisthenegativeexperiencemostcommonlycomplainedaboutconcerningsomeone’sinteractionwithabusiness.
It’snotdifficulttofindoutwhattheprimaryfrustrationis.Forexample,askahundredpeoplewhohavedonebusinesswithabuilding
contractoraboutthetransaction,andatleastseventy-fivewillsay,“Thejobwasn’tcompletedwhentheysaiditwouldbe;therewasalwaysanexcuse.”
Askahundredpeoplewhohavehadtheirautorepairedaboutthetransaction,andatleasteightywillsay,“Ifelttotallyoutofcontrol,andtheymakemefeelworse.”
Askahundredpeoplewhohavebeentoadoctoraboutthetransaction,andatleastninetywillsay,“Iwaitedtoolongtoseethedoctor!”
Stereotypes?True.Butitisinthesestereotypicalresponsesthatonefindstheprimaryfrustrationandthebestway.
Whatwouldhappentothegeneralcontractorwhosays,“AtHeartfeltConstruction,wearealwaysontime,onprice,anddeliveraspotlessperformance—orwepayforit!Guaranteed!”
Whatwouldhappentotheautorepairshopthatsays,“Whensomethinggoeswrongwithyourcar,theonethingyoudon’tneedismoreworry.AtHearthstoneAuto,you’llalwayshaveagoodexperience—orthejobisonus.Guaranteed!”
Whatwouldhappentothemedicalofficethatsays,“AtSweetWaterMedicalOffice,wealwayskeepourappointmentsontime—orwepayforthevisit.Guaranteed!”
Whatwouldhappeniftheyactuallydidthesethings?Iftheyactuallypulledoffthoseguarantees?Iftheyeliminated,onceandforall,theprimaryfrustrationnormally
experiencedbymostpeoplewhointeractwiththeirkindsofbusinessesdayafterday?
Iftheyweretosettheirattentiononituntiltheirbusinessesbecamemasters
Iftheyweretosettheirattentiononituntiltheirbusinessesbecamemastersatperformingtheimpossible?
Wouldn’tthatmakeadifferencetothepeoplewhobuyfromthem,thepeoplewhoworkforthem,thepeoplewhoselltothem,andthepeoplewholendtothem?
Wouldn’tthathaveapositiveimpactoneveryoneinvolved?Wouldn’tthatsettheirbusinessapart?Isn’tthatobvious?Well,that’swhatprocess-orientedcompaniesareallabout:inventingan
unobviouswaytodotheobvious,everysingletime.
Tomakeapromise—andtoacceptfullresponsibilityforthedeliveryofthatpromise—requirescontrol,thekindofcontrolthatonlyaprocess-oriented
companycanhopetoexercise.
Letmetellyouaboutjustsuchacompany,SantosConstruction,asmallbusinessthatdeterminedwhattheprimaryfrustrationoftheircustomerswasanddecidedtodosomethingboldaboutit.
MarinoSantosusedtowearblacktoworkeveryday,exceptforabrightredscarfheworeasasweatbandthatalsoservedtotiebackhiscrow-blackhair.
MarinoSantoslovedthecolorblack.Tohim,blacksignifiedmastery,singlenessofpurpose,seriousness,andalsodanger.BlackwasthecolorbywhichMarinoSantosmarkedthebarriersthatdistinguishedhim,andthereforeseparatedhim,fromtherestoftheworld.BlackwarnedtheworldthatMarinoSantoswasaseriousfellow,nottobefooledwith.Blackwashisshield.
Ontheotherhand,redwasthecolorofMarinoSantos’sheart.HisbrightredscarfsignifiedtoMarinoSantosthepassionofhisinterest.It
wasthehot,restlessflameatthecenterofhislife,theintensefirethatburnedinsidehim,insidetheblackcontainer,thecoldshieldofhisdistance.
Whilehisblackclothessaid,“Istandalone,”hisredscarfsaid,“I’mabouttoexplode!”
Andexplodehedid,everydayatwork.Itwasinthenatureoftheworkthathedid.
MarinoSantoswaswhatiscalledintheconstructiontradeaframer.HeandhissmallcrewsubcontractedtheframingofhomesinSouthernCalifornia,Arizona,Nevada,Colorado—wherevertheworkwas.
Tothegeneralcontractorswhohiredthem,theyweresimplyknownasSantos’screw.Insidethesmallcompany,however—morelikeasmallbandof
menthananactualbusiness—theythoughtofthemselvesaslosapasionadossinigual—“theonlyones.”
EveryoneinthetradeknewSantos’screw.Amongtheirpeers,MarinoSantosandhisbandwerethestuffoffolklore.Itwasnotonlythattheywerethebestatwhattheydid—andtherewasnodoubtinanyone’smindthattheywere—buttherewasthemystique,themachismo,thataccompaniedthemeverywheretheywent.
Likethestarstheywere,Santos’screwremainedaloof.Atbreaks,theywouldgathertogether,seatedinasmall,tightcircleonaconcreteslabfacingeachotherwhiletheyquietlydranktheircoffee,atetheirburritos,andwhisperedamongthemselves—startalk,nooneknewaboutwhat.
ButwhenMarinoSantosandhiscrewwenttowork,therewasnothingquietaboutthematall.Theirframinghammersfairlyflew!Wallswentupinrecordtime—firstonehouse,thenanother,emergingasthoughmiraculouslyfromtheconcreteslabs.Youcouldliterallywatchthehousesgrow,theywentupsofast.MarinoSantoswasinthemiddleofitall,hismusculararmwithitsshiningbluesteelhammer,asifgrowingoutofhishand,whalingawayatthewood,thwack,thwack,thwack;hisstrongmelodicvoiceleadingthesongs,callingoutnames,swearingatthesky.
Andtheydidittomusic!ForMarinoSantos’screw,everydayonthejobwasaperformance,adance,aphysicalandvisualcrusade.Losapasionadossinigual—“theonlyones.”Itwaswhattheydid.Itwastheirsignature.Itwaswhattheywereknownfor.Itwaswhattheylivedtodo.Itwaswhotheywere.
Then,earlyoneWednesdaymorninginthemiddleofJuly,onthewaytoajobinBarstow,MarinoSantos’spickupblewatireandflewofftheroadatninetymilesanhourandturnedoverfivetimesuntilitfinallycametorestupsidedownagainstaboulder.Forthirteenhours,MarinoSantoslaytrappedinhistruckwithabrokenbackbeforehewasfinallydiscoveredbytheHighwayPatrol.
Thathesurvivedtheaccidentwasamiracle.Buthewasoutoftheframingbusinessforgood.Whatdoesaframerdowhenhecan’tframeanymore,especiallywhenhe’sa
manlikeMarinoSantos?Whatdoesastardowhentheverythingatwhichheexcelsissuddenly
takenawayfromhim?Whatdoesamanwhouseshisbodyforalivingdowhenhisbodycanno
longerperform?Whatdoesacompanydowhenithasbuiltitsabilitytoperformontheskills
ofahandfulofgoodpeopleandthey’resuddenlygone?Forthefirstsixmonthsorso,MarinoSantosdidlittleornothingbutdrink.
Forthefirstsixmonthsorso,MarinoSantosdidlittleornothingbutdrink.Hewokeupinthemorninganddrank,andhedidn’tstopuntilhepassedoutatnight.
Attimeshewouldgetsofuriouswithhisconditionthathewouldheaveanemptywhiskeybottlethroughtheclosedbedroomwindowandintothestreet,thensitthereinhiswheelchairamidtheshardsofbrokenglass,screamingintothenightatanyonewhowouldlisten.Thepolicewouldcomeby,buttheywouldn’tdoanythingotherthanthreatentotakehimin.
Hiscrewcametovisithimeveryday.Theyhatedtoseehimlikehewas.Theycalledhimnames.Theycriedwithhim.Theysatsilentlybyandsaidnothing.Theythreatenedthattheywouldn’tcomebackanymore.Theyplayedmusicanddrankwithhim.Theydidwhatevertheycouldforbothhimandthemselves—sometimesjusttobetherewasenough.
Andthen,assuddenlyasitbegan,itwasover.Onedayheseemedjustasbad,andthenextdayhewasbetter.Hecalledhiscrewtogether.“Iwanttoapologizetoallofyou,”hesaid.“Notforthepastsixmonths,notforthedrinking—Icouldn’thelpthat.“Iwanttoapologizefortheframing,forthearrogance,forthebeliefIhadin
mybody,forbeingsostupid.“Idon’twanttobestupidanymore,”MarinoSantossaid.“It’stimetostartanewbusiness.”MarinoSantosdidn’tcarewhathisnewbusinesswas,althoughheknewit
wouldhavesomethingtodowithconstruction.Constructionwasinhisblood.Helovedthesmellofrawwood.Helovedseeingthingsstartfromnothingandbecomesomethingalmostovernight.Helovedthephysicalimpactithadontheworld.Itwasamarkofhishavingbeenthere.Itwassomethingyoucouldtouchandlookatforyearsafter.
Yes,ithadtobeconstruction,butotherthanthatitdidn’tmatterwhatkindofconstructionitwas.
Exceptforthis:theconstructionhisnewbusinessdidwasgoingtohaveasprofoundanimpactonthepeoplearoundhimashisoldbusinessdid,exceptthatthenewbusinesswouldnotdependonhis,orhiscrew’s,physicalskills.Thebusinesswouldworkwithoutthem.
Atfirsthismendidn’tunderstand.Theyhadalwaysworkedwiththeirbodies.Theyhadalwaystakenprideintheirextraordinaryphysicalskill.Nottoworklikethatanymoredidn’tmakesense.Theirjoywastoexpressthemselvesphysically,tomoveontheconcreteslab,toraisewalls,towalktherafters.Tothinkofnotdoingthesethingsanymorecreatedgreatsadnessinallofthem.
ButbecausetheycaredforandrespectedMarinoSantossomuch,they
ButbecausetheycaredforandrespectedMarinoSantossomuch,theylistened.Andgradually,itcametothemthatwhatMarinoSantoswastalkingaboutwouldn’tdeprivethemofanything,butwouldgivethemsomethingtheyhadneverhad.
Inoneoftheirmanyconversationstogether,MarinoSantossaid,“Ihavethoughtaboutthisagooddeal.Itcomesdowntothis:eitherweworkforaliving,likeburros,untilwecan’tworkanymore(hespreadhisarmsasiftosay,“Iamtheproof”),orwefindawaytobuildabusinessthatworksforus.Wethinkaboutthisbusiness,weputourmindstoit;weshapeitsothatitworkslikewehavelearnedtowork,withprecision,withjoy,withenergy.Butwemustfindawaytodothiswithoutpeoplelikeus,peoplelikeuswhotakeprideinbeingseparatefromtheworld,peoplelikeuswhoneedtobealone.Peoplelikeuswilleventuallykillourbusiness,asIhavealmostkilledourbusiness.No,wemustbuildabusinessthatcanmakeiteasyforpeoplewhoarenotlikeus,andwhowillneverbelikeus,toactlikeus.Itisourfiercepridethatmakesussogood.Wemustlearnhowtogivethisfiercepridetopeoplewhodonotpossessitnaturally.Wemustmakeitpossibleforeveryonewhoworksinourbusinesstobecomeasgoodasweareaslongastheyworkinourbusiness.Thatwillbeourgifttothem.Wemustfindawaytodothis.
“Ourbusinesswillgivethemsomethingtheycan’tgetelsewhereintheworld.And,asaresultofthat,theywillstay,andourbusinesswillflourish.Thatwillbetheirgifttous.Thosewhoarelikeus,however,theotherlosapasionadossinigualintheworld,mustdowhattheymustdo.Thereisnothingwecandoforthem.”
Asalways,oncetheymadetheirmindup,MarinoSantosandhiscrewtooktheirpathseriously.
InaccordancewithMarinoSantos’sinstructions,eachmantookitashispersonalmissiontofindworkinsomesegmentoftheconstructionindustrythatwasnewtohim.
Theysegmentedtheindustryintonewconstructionandreconstruction,andintocommercialandresidential.Theythenbrokeeachsegmentintoparts,tofindoutwhichsegmentandwhichpartofthatsegmentwasmostpromisingasabusinessopportunity.
MarinoSantostoldthemthattimewasnotimportant.Whatwasimportantwasmakingcertainoftheirultimateselection—thatitbethesinglesegmentoftheconstructionindustrythatcouldprovidethemwiththegreatestopportunitytoachievetheirobjective.
Ithadtobeasegmentoftheindustrythathadaconsistentgrowthpattern,didnotexperiencesharpup-and-downswingsbecauseoftheeconomy,was
relativelycompartmentalized—thatis,repeatedthesametasksmuchthesamewayfromjobtojob—wasn’tcapitalintensivetoeitherstartormaintain,andcouldbeoperatedindependentlyofothercontractors—thatis,couldsecure,start,andcompleteacontractwithouthavingtodependonsubcontractorsorgeneralcontractorstodotheirpartsofthejob.
MarinoSantos’skitchenservedastheiroperationscenter.Everynightafterwork,themenreportedtheirfindingsoveracoldbeer.Therewereheatedarguments.Eachmancametoconclusionsthatothers
refuted.Butgradually,asthemenbecamesmarterabouttheirmission,moreintelligentabouttheirconclusions,andmoreeloquentinthepositionseachtook,theirargumentsbecamelessheated,thoughnolessintense.
MarinoSantos’sstrategywassimple:asoneindustrysegmentafteranotherwasexcludedasanoption,themenwhowereemployedinthosesegmentswouldleavethemtofindworkintheremainingsegments,untilfinallytheywouldallbeworkinginthesameindustrysegment—thesegmentofchoice—butforcompetingcontractors.
Andthat’sexactlywhathappened.Aftertwoandahalfyearsofdedicatedwork,research,andplanning,Marino
Santosandhismenfoundthemselvesdecided.Itwassuchasimple,uncomplicateddecisionwhentheyfinallycametoit.Theywouldgointothekitchenremodelingbusiness.AndtheywouldcallitThreeDayKitchens.Onthefaceofit,thereissomethingsoordinaryaboutbusiness.Somethingsounimportant,sotrivial.ForMarinoSantosandhismentoapplythemselvessodeterminedly,to
expendsomucheffortandtimetotheordinarytaskofdecidingwhatbusinesstogointo,tospendallthatenergymerelytostartakitchenremodelingbusiness,wheninsteadtheycouldhavedone…what?
WhatalsowouldamanlikeMarinoSantosdo?JointhePeaceCorps?GraduatefromMITorStanford?Enteramonastery?TryoutfortheOlympics?Writeabook?
Whatbettercouldanyofusdothanhe?Howmanypeopledoyouknowwhohaveexpendedasmucheffort,
intelligence,care,orattentionontheselectionofapath?Howmanypeopledoyouknowwhohavetakensuchapassionateinterestin
everysinglethingtheydo?Howmanypeopledoyouknowwhocouldremembertheiraimforaslong
astwoandahalfyearswithonlytheirowninteresttoremindthemofit,whocouldbringtheenergyandattentionofagroupofstrong-willedpeopletobear
downonaproblemthathadnoendinsight,andstillmaintainthatenergyandattentionaswellasMarinoSantosdid,andwhocouldkeepthatattentionfromwavering,fromgettinglostamongthedailyconcernsthatplagueusall,andcertainlymusthaveplaguedhim?
Whodoyouknowwhopossessessuchforceofpurpose,suchimpeccablewill?
Whatdifferencedoesitmakewhatthebusinessis,afterall?Orthatitisabusiness?Thesemen—theseapasionadossinigual—couldhavebeenclimbingthe
Himalayas,anditwouldn’thaveaddedonethingtotheirjourney.Infact,itwasatleasttwomoreyearsbeforeMarinoSantosandhismen
completedtheirfirstkitchenforpay.Theyinstalledhundredsofkitchensforpractice.Everyconceivableproblemwasfaced,agonizedover,dealtwith,andovercome.
TheyworkedatnightandonweekendsinawarehouseMarinoSantosrented,inwhichtheyconstructeddozensofpracticekitchensites.Everykitchenproblemhismenfacedduringtheirdayonthejobwasputonpaperatnightandanalyzed,scrutinized,discussed,arguedabout,untileverypeculiarity,everyexception,everyunpredictablevariablefacedinthekitchenremodelingbusinesshadbeenreviewedatleastadozentimes—andsometimesevenmoreoftenthanthat—lookingforthesimilarities,thepredictable,thestandardizingopportunities.
Noone,theyweresure,hadeverspentasmuchtime,trouble,andintelligencetosolvetheproblemsassociatedwithkitchenremodeling.
Theyweredeterminedtogetitright.Theyweregoingtocreateakitchenremodelingsystemsuchastheworld
hadneverseen,thatcouldproduceanabsolutelypredictableresultinthehandsofnoviceworkerstrainedonlyintheirsystem,andtheyweregoingtofigureouthowtodoit—howtocompletelyrenovateandremodelanykitchen—walls,windows,floors,cabinets,lighting,plumbing—allwithinnomorethanthreedays.Guaranteed!
Andtheyweregoingtofigureouthowtodoitatacostsignificantlybelowthecompetition,ataqualitysignificantlybetterthananyonearound,andataprofitthatwouldjustifyitbeingdoneatall.
Thecompetition,MarinoSantosdiscovered(thoughhewasn’tsurprised),wasnottheproblem.Therewasnocompetition.Notforthecompanyheintendedtocreate.
Hismenreporteddailyonthewaste,inefficiency,lackofskill,disinterest,andlackofmanagementonthejobstheywereworking.
Materialsandmenrarelyshowedupontime,andsometimesnever.
Materialsandmenrarelyshowedupontime,andsometimesnever.Thejobsitewasusuallyamess.“Theyarepigs,”oneofhismenreporteddisdainfully.Whereheavyreconstructionwasrequiredandsurpriseswerediscovered(as
theyoftenwere),thejobcouldbedelayedforhours,evendays,untilthealmostalwaysabsentcontractor,orhisforeman,ifhehadone,showeduptopersonallysolvetheproblem.
No,asMarinoSantosknewonlysowell,contractorswerenotfastidiousmen.
Shoddyworkwasnormal;therewasnotraining.Experiencedpeoplewereeitherhiredoutofthehall,offthestreet,oras
subcontractors.Themarginsweresothinthattherewasnotimeormoney,norpeopletospendondevelopingnewpeople.
No,othercontractorswouldnotdetermineThreeDayKitchens’successorfailure.Heandhismenwould.
Theyworkedliketheyhadneverworkedbefore.Theyweredeterminedtogetitright.
Akitchen,morethananyotherroominahouse,isbuilttocertainpredictablestandards.
Approachedrandomly,thatis,withoutadatabaseofquantifiedexperience,itmightseemthateverykitchenpresentsauniqueproblem—thateveryoneisdifferent.Thisisnotthecase.
Unfortunately,fewsmallremodelingcontractorshaveeverquantifiedanyoftheirexperience,andsowhattheyfindthemselvesdealingwithdayinanddayoutareseeminglyuncommon,orproblematic,conditionsthatalwayscallforuncommonand,usually,costlyreactions.
Indeed,whatMarinoSantosandhiscrewdiscoveredisthatmostofthekitchenworktheymonitoredoverthetwoyearsofthestudywaspredictablyandmonotonouslythesame,presentingmeasurablyfewvariationsonarepetitioustheme.
Therefore,toinventakitchenremodelingsystemthatcouldguaranteeaninstalledkitcheninexactlythreedaysmeantonlythatMarinoSantosandhismenhadtodeterminewhatthosevariationsonthethemewere;createavarietyofpreplannedkitchensolutionstoaddresseachandeveryoneofthem;designapreprogrammedconstructionandinstallationstrategyforeachkitchensolution;recruit,hire,andthenrigorouslytrainasmallcrewofinexperiencedtechniciansintheirconstructionandinstallationsystem;andestablishamanagementsystemthatwouldassureMarinoSantosandhismenthattheirsystemwouldbeusedexactlyasplanned,eachandeverytime.
Andthen,practice,practice,practicetheseprocesses,overandoverandover
Andthen,practice,practice,practicetheseprocesses,overandoverandoveragain,untiltherewasn’taquestioninanyone’smindthattheycouldbeimplementedfaithfullyandimpeccablyeverysingletime.
MarinoSantosandhismenboiledtheirmissiondowntofiveessentialingredients:
1.Controlwhatissold.2.Controlhowitissold.3.Controlhowitisplanned.4.Controlhowitisbuiltandinstalled.5.Controlhowitismonitored.
Thefailureofacontractortoexercisecontroloveranyoneofthesefivecontrolpoints,asMarinoSantosandhismenreferredtothem,meantthatthejobwouldn’tbecompletedaspromised.
ThatwouldnotbeaproblematThreeDayKitchens.Theyrenewedtheirintentioneachday.Thenightfollowingtheirfirstpaidkitcheninstallmentwasaspecialnight
forMarinoSantosandhismen.Ithadgoneoffwithoutahitch,buttheyhadknownitwouldturnoutthatwaylongbeforethejobbegan.
Theyhadplanneditthatway,andtheyhadpracticedtheirprocessdiligently.Nothingwastakenforgranted.
Theircustomerwasastonished.Notonlywasthejobdoneexactlyaspromised,butthemenwhodiditwere
astonishinglyclean,wellorganized,andfastidiousintheircomportment—“joyful,”thecustomersaid,expressingherdelighttoMarinoSantosaboutnotonlyhavingthejobdoneexactlyaspromised,buthavingexperiencedpeoplewhoobviouslylovedtheirworksowell.
“Howdoyoufindsuchgoodpeople?”sheasked.MarinoSantossmiled.“IwishIknew,”hesaid.
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
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Thethirdcategoryofpreferenceisthefunctionalideal.Theunderlyingquestionalwaysis,Whatisthebestthingtodo?Thatcan
onlybeansweredbyunderstandingwhatpeoplewantmost.The“bestwayprocess”isdiscoveredbyansweringthefollowingquestions:
Whatonethingwouldourcustomers,employees,suppliers,andlendersmostlikeustodoforthemthatweandourcompetitorscan’tcurrentlydo?Hasanyoneevertriedtodothisthing?Ifyes,whydidtheyfail?Whatwouldbethebestwaytodoit?Whycan’twedoit?Whatwoulditmeantousifwecoulddoit?Howmuchwoulditcostustobeabletodoitthebestway?Isitworththecost?Ifyes,whatwouldbetheimpactonourcustomers,employees,suppliers,andlenders?Ifnegativeforanyorall,howwouldweovercomethatnegative?Ifwecan’tovercomethenegative,dothebenefitsoutweighthenegativeaspects?Ifwecan,shouldwedoit?
Thebestwayisalwaysthewaythateliminatestheprimaryfrustrationexperiencedbyanyoneofthefourprimaryinfluencersofabusiness.
Theprimaryfrustrationisthenegativeexperiencemostcommonlycomplainedaboutconcerningsomeone’sinteractionwithabusiness.
Thus,tobecomethefunctionalideal,youmusteliminatetheprimaryfrustrationexperiencedbyanyoneofthefourprimaryinfluencersofabusiness.
CHAPTERSEVEN
THEFOURTHCATEGORYOFPREFERENCE:THEFINANCIALIDEAL
Money,money,money.They’redrivingmecrazy!
—AnonymousCEO
I’mgoingtochangethetonerightnow.Ihavetotellyousomethingtrulyimportant.Ineedtotalkaboutmoney.ThemostimportantthingIhavelearnedisthatwedon’tspendmoneyas
muchasweconsumeit.Moneyisfood.Weconsumeitandconvertitintothings—thefeelings,associations,and
symbolswebelievein.That’swhataconsumersocietyreallymeans.Ittakesthematerialideaof
money,ingestsit,digestsit,andconvertsitintoitsideaofliving.
Tosome,moneyisconvertedintopower.Toothers,moneyisconvertedintosecurity.Toothers,moneyisconvertedintogettingbythebestwaytheycan.Toothers,moneyisconvertedintoself-esteem.Toothers,moneyisconvertedintosurvival.Toothers,moneyisconvertedintoscarcity.Toothers,moneyisconvertedintomagic.Toothers,sex.Tostillothers,beauty.Tomany,moneyisconvertedintosin.Andtostillothers,moneyisconvertedintoevil.
Thefactisthatmoneydoesnotexistwithoutpeople.
Thefactisthatmoneydoesnotexistwithoutpeople.Moneyhasnomeaningwithoutpeople.Moneyissimplyanideawehaveagreedupon,anideathatrepresentsto
everyoneofusournetworthintheworld.Awordaboutmoney.IhaveheardsomanyNewAgewould-bebusinessmavensrepeatthat
saddestofnoxiousplatitudes,“Dotherightthings,andthemoneywilltakecareofitself.”Letmetellyouthis:themoneynevertakescareofitself.Never.
YOUhavetotakecareofmoney.Daily.Notmonthly,notannually,butdaily.Bythehourisbest.Ihavelearnedthateveryonehasadifferentperceptionofmoney—ingests
money,digestsmoney,valuesmoney—inatotallysubjectiveandverypersonalway.Employees.Customers.Suppliers.Lenders.
Don’tscrewaroundwiththoseperceptions!Youwillloseahand!Andifyoupersist,you’lllosemorethanthat.Inafreemarketsystem,moneyisthemeasure.Inafreemarketsystem,moneyspeaks.Inafreemarketsystem,wehavebeentaughtonlytoowellthatwhatwe
owniswhoweare,andwhatweownistheby-productofmoney.Don’tmesswiththattruth.Don’teventhinkyoucanmesswiththattruth.Theminuteyoumesswiththattruth,nomatterwhatyoubelievetobetrue
aboutthepersonwhosemoneyyou’remessingaroundwith,thatpersonwillhaveyourhead.
Hewon’tintendto,mindyou.Hewouldn’tbelieveitofhimself.Buthewilldoitallthesame!Hewilleatyourheadforlunch!
Pleasedon’tcallmecynical.I’mnot.Pleasedon’tsendmee-mailsprovingmewrong,orthatyouhavean
exampleofhowwrongIcanbe.Pleasedon’tbother;I’msurethereareexceptionstotherule.Therealways
are.Buttheruleistherulenonetheless.
Buttheruleistherulenonetheless.Messaroundwithpeople’smoneyinafreemarketsystem,andyourgooseis
cooked.Evenifyoudidn’tdoit,they’llsayyoudid.Evenifyoudiddoitbutdidn’tintendto,yournameisstillmud.Evenifyouonlythoughtaboutdoingit,thewrathwilldescenduponyouas
thoughfromthehandofGod.Inafreemarketsystem,moneyisamonstrouslycomplicatedthing.
Itisallsomepeoplehave.Itisallsomepeopleare.Itisallsomepeoplewant.Itiswhatliesdownbesidetheminbedatnight.Itishowtheyvaluetheirday.Iftheythinktheyhavearighttoit,theywillkillyouforit.Iftheythinkthattheyareindangeroflosingwhattheyhave,theywill
buyahandgunandrunawaytothehillstoprotectit.Iftheybelieveitissexy,theywillmakelovetoit.Iftheybelieveitispower,theywillmakeaclubofitandbeatyou
senselessuntilyousubmit.Iftheybelieveitwillkeepthemsafe,theywilldressthemselvesinit.
Inafreemarketsystem,moneyistheonlythingthatstandsbetweenmostpeopleandtheawful,bottomless,terrifyingvoid.
Ilearnedaboutmoneyinthemostdifficultway,almostlosingmybusinessonceandforallin1985.Havingmyasssuedoffby“evildoers.”Spendingyearstopayoff$2millionindebt.
Icouldhavefollowedtheeasypath.Icouldhavegonebankrupt.Infact,that’swhatwassuggestedbymymosttrustedadvisersandhighlypaidconsultantsIbroughtintofixthemessIunexpectedly,inexplicablyfoundmyselfin.ButIdidn’t.Istayedthecourse.I’mgladIdid.
Because,whilemoneyiseverything…moneyisn’teverything.Trustme.Yourword,yourintegrity,iseverything.
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
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Thefourthcategoryofpreferenceisthefinancialideal.
You’veheardtheplatitude,“Dotherightthings,andthemoneywilltakecareofitself”?Letmetellyouthis:themoneynevertakescareofitself.Never.
YOUhavetotakecareofmoney.Daily.Inafreemarketsystem,moneyisthemeasure.Moneyspeaks.Don’tmesswiththattruth.Theminuteyoumesswiththattruth,nomatter
whatyoubelievetobetrueaboutthepersonwhosemoneyyou’remessingaroundwith,thatpersonwillhaveyourhead.
Tobecomethefinancialideal,youmusthaveintegritywhenitcomestomoney.Yourinvestors,yourbankers,youraccountants,yoursuppliers,yourcustomers,andyouremployeesmustknow,withoutadoubt,thatyouhaveintegrity.Youbackupyourwordwithcompatibleactions.
Moneycanbeyourallyandhelpyoubuildyourbusiness.Oritcanbeyourenemyanddestroyyourbusiness.Thedecisionbelongstoyou.
CHAPTEREIGHT
THEE-MYTHPERSPECTIVE
ConsciousnessandConsciencearesimilarintheirrespectivespheres,onebeingintheIntellectualCenter,theotherintheEmotionalCenter.ConsciousnessisKnowingalltogether;
ConscienceisFeelingalltogether.
—MauriceNicoll,PsychologicalCommentaries
I’msurethatcountlessbusinessesinthiscountryhaverespondedenthusiasticallyoverthepastseveralyearstotheclarioncallforareturntothoseworthwhilepuritanvaluesofservice,excellence,andcaring.Tothecreationof“visionstatements”and“missionstatements,”and“values,”andthenurturingoftheir“corporateculture.”
Youknowwhoyouare.Unfortunately,I’malsosurethat,despitetheinitialfervorsuchclarioncalls
create,mostofthesebusinessesoperatethesamewaytodayastheydidbeforetheflagwasraised,withequallyslipshodservice,mediocreperformance,andasgreedyandself-servingamind-setasever.
That’sbecauseneitherservice,excellence,norcaringcanbeproducedbyexecutivefiat,orbywishingitso.
TomPetersandothersuchguruscanrailalltheywant.Itwon’tmakeanydifference.
Theadoptionofservice,excellence,andcaringasstrategicoptions—asslogans—toreviveadeadordyingbusinessisnotonlyantitheticaltothetruemeaningofthosewords,butascynicalasanythingourMachiavellianmindscanproduce.Inshort,itwon’twork.
Service,excellence,andcaringarenotsomethingyoucandoanythingabout.Theyareastateofmind.
Whenabusinessisbereftofsuchqualities,itisbecauseitsfounders,itsowners,anditsmanagersarebereftofsuchqualities.
owners,anditsmanagersarebereftofsuchqualities.
Theydon’tcaretoserve.Itdoesn’tbotherthemthattheirperformanceisless,byfar,than
excellent.Theydon’tcareaboutthebusinessbecausetheysimplydon’tcareatall.
That’swhysuchwordsfailtoworkforthem,indeedformostcompaniesthatattempttoadoptthemfortheirownpurposes,totheirownstrategicends.
Becausethecynicaluseoftruehumanvaluesalwaysproducesexactlytheoppositeofwhatwasintended.
Truehumanvaluescannotbeadoptedfortheexpedientorthepragmatic.Theyarenot“tools”withwhichtodevelopa“managementstyle.”
Theyarevalues.Theyarebeliefs.Theyarehowoneviewstheworld.Theyareeitherapartofus,orthey’renot.
Theycannotbetriedonlikeasuit,therightcolor,therightshape.Theyarenottheretobeused.Theycan’tbe.Theywon’ttolerateit.Thereissomethingfundamentallyobsceneabouteventryingto.
So,tocreateanE-MythEnterprise,you—thefounders,theowners,andthemanagersofcompanieseverywhere—mustalreadypossessanE-MythPerspective.
Andifyoudon’talreadyhaveone,you’reindeep,deeptrouble.ThosewhopossessanE-MythPerspectivearewhatIwouldcallpragmatic
idealists.Theyareneverhappywithanythinglessthanperfection,buttheymeasureperfectionbyitsunparalleledabilitytoproducepracticalresultsintheworld.
Pragmaticidealistsarenotsentimental.Theyaredriven.Theyarenotpatient.Theyareoftenunkind.
Pragmaticidealistsdonotpandertothecomfortzoneinpeople.Theydonotmakeiteasyforpeopletogetby.
Mysaxophoneteacherwasapragmaticidealist.Helivedinaworldofperfection,buthepracticedachievingitinthisworld.Hecouldheartheperfecttoneinhishead.Hecouldimaginetheperfectscale.
Idoubtthatheeverwassatisfied,however,withanyofhisstudents,orwith
Idoubtthatheeverwassatisfied,however,withanyofhisstudents,orwithhimself.Yethelovedwhathedidandwhattheydid.Itwashispassionandhisparadox.
HewouldlistentoCharlieParkerwithawe,yethecouldheareveryflaw,everyinarticulatestatement,everyfailuretotouchthesublime,theperfect,theabsolute.
AndasmuchasheheldCharlieParkerinawe,Merlecouldnotforgivehimforhisindifferences,forhislassitude,forhisunwillingnesstogiveithisall.
Thatisthedarkconflict—thatexquisiteyettragictensionbetweenthepossibleandtheimpossible—thatliveswithinpragmaticidealists.
Theyarehopelesslystuckinalessthanperfectworld,inaworldinwhichmostpeoplequitlongbeforepragmaticidealistsevengetstarted.Yetitisnototherpeoplewhodrivepragmaticidealiststodesperation,whoarecontinueddisappointments.Itistheywhodisappointthemselvesmostofall.Theyareforeverlostintheirownfailings.
Asgoodastheyare,theyarenevergoodenough—neversmartenough,neverdisciplinedenough,neversensitiveenough.Yet,intheirminds,theyarealwaysontheedgeofsomething—abreakthrough,adiscovery,afindofexistentialimportance.
Pragmaticidealistsinbusinessknowwhatthedriveforexcellenceisallabout.Theyinventit.Theyareitsslaves.Theycannotimagineanyotherwaytolive.Excellenceisnotawordtothem.Itisnotastrategy,butafeeling,apassion—aprofoundidea.Itcoursesthroughtheirveins.
I’mtalkingabouttoughstuff.I’msuggestingthatgreatcompaniesbecomegreatcompaniesbecausethey
areheadedbygreatpeoplewhodon’tfeeltheirgreatness,andneverwill.Greatcompanies,E-MythEnterprises,areheadedbygreatpeoplewhoare
possessedbyaburninghungertocreatesomethingperfectintheworldthattheycan’tfindinthemselves.
Andtheycan’thelpthemselves.It’snotsomethingtheydooutofchoice.Theyarecompletelypossessed.Theyarecaughtupbyanideathatcontinuallyeludesthem,thathovers
tantalizinglyjustoutofreach,thatcan’tbeperfectlyseenorapprehended,butthatpromisestorevealitselfatanymomentiftheseekerwilljustextendhimselforherselfonestepmore.
Inotherwords,theE-MythPerspective,thedesiretocreateagreatcompany,oragreatsaxophonist,oragreatautomobile,oragreatgarden,isnotforthefainthearted,theweak,orthesentimental.
Ittakeseverythingonehas,andmore.Itisbothablessingandacurse.Understand,I’mnottalkingaboutheroeshere.Mostoften,thesepeopleareunbearabletobearound.Iftheyareimpeccableinonething,theyareoftendisastersinanother.Theyarewalkingcontradictions.
RinkBabka,forovertwodecadesoneofthetoptendiscusthrowersintheworld,toldmethathiscoach,DinkTempleton,oneofthemostbrilliantcoachestheworldhaseverknown,“smokedlikeachimney,dranklikeafish,andsworelikeatrooper.”Yetwhenitcametothesport,therewasnoonemorededicated,morepossessed,morecommittedtoperfectionforhisboys.
ItisnosecretthatWaltDisneywasadopewhenitcametobusinessfinance.Ifithadbeenleftuptohim,hisbusinesswouldhavefailedadozentimes.
ItisnosecretthatRayKrocheldpermanentgrudges,insultedhispeople,andwasknowntothrowfitsoftemperliketheworstadolescent.
ItisnosecretthatSteveJobscontrolseveryaspectoftheso-calledAppleExperience,fromtheclean,crisp,no-nonsensedesignandlayoutofApplestores,totheurgent“openme”(yetenvironmentallysound)senseandsimplicityofthepackagingofproducts,totheelegantandutilitariandesignoftheproductsthemselves.
Yet,whileallthesethingsaretrue,thereisbrillianceaboutsuchpeople—avitaledgethatdistinguishesthemfromeveryoneelse.Youcan—orcould—seeitintheireyes.
Thatvitaledgecomesfromthefactthattheyaredrivenbyideas.IdeasresideattheheartoftheE-MythPerspective.ThosewhoarepossessedbytheE-MythPerspectivearedrivenbyideas.Ideasarethefoodbywhichsuchpeoplearenourished,revitalized,andgiven
thelifetheycrave—ideasofsuchawesomesize,temper,andquality,thattheyarecompelledtore-createthem,togivethemphysicalform,togivethempresence,togivethemsubstance,togivethemrealityinthisworld.
DiscussinghisnovelAGoodDaytoDie,authorJimHarrisonexplainsthatthetitlewasborrowedfromIndianlore:ThatcomesfromtheNezPercesaying,thewholeideayouhavetobemorallyandspiritually,asawarrior—whetheryou’reawriterorbusinessperson—youhavetolivesocorrectlythatyoucanwakeupinthemorningandlookoutandsay,“Todayisagooddaytodie.”Oneveryrarelyisinthatkindofshape,butit’satremendousthingtobeabletosay.
Howmanyofushavelived“morallyandspirituallyasawarrior”?
Howmanyofushavelived“morallyandspirituallyasawarrior”?Howmanyofushavelivedsocorrectly,thatwecould,iffacedwithdeath,
letgoofourliveswithoutregret,completelyempty,devoidofshame,regret,longing?
Whatdoesitmeantolivecorrectly?Whatwouldawarriorbusinessperson,awarriormerchant,be?It’snotthebusinessatall.Thewholeideafallsapartifit’stieddownbyabusiness.
Thewholeideabecomesunthinkableifit’stieddownbytheideaofCheezBalls,orRitzCrackers,orJell-O.
ThewholeideaoftheE-MythPerspectiveisn’ttieddowntothecommercialrealityofwhatourbusinessisdoing;itexceedsit.
Itraisesitup.AnE-MythEnterprisedoesn’tmakeCheezBalls.BecauseCheezBallsarenotsomethingapersoncanfeelgoodabout.Nomatterhowhardheorshetries.AndifheorshecouldfeelgoodaboutCheezBalls,it’salreadytoolate.
No,iftherecouldbesuchapersonasawarriormerchant(andwe’rejustpursuingpossibilitieshere),IwouldimaginethatheorshewouldbeabletodiscriminatebetweenCheezBallsandothermoreworthwhilethings.
AnessentialcomponentoftheE-MythPerspectiveisthatwhatabusinesscreates—thecommoditiesorproductsitsellsorchoosestodevelopforsale—iscriticaltothevaluesinherentinthebusinessitself.
BecausemakingCheezBallshasnoinherentvalue,andisofvalueonlybecauseofthemoneyitcreates,andbecausecreatingmoneybymakingCheezBallsmustultimatelydegradeone’sdignity—one’ssenseofpersonalhumanvalue—thewarriormerchantwearespeakingabout(iftherecouldbesuchaperson)couldnotliveinsuchastate.Heorshewouldnotwishtobefoundbydeathinsuchastate.Itmostcertainlywouldnotbe“agooddaytodie”ifthatwerethecase.
HowcouldanybodychooseCheezBallsastheirintentionalfate?
I’vewatchedanironmanwintheIronMancontest.I’vewatchedaslight,wirywomanclimbstraightupamountain.
I’vewatchedaslight,wirywomanclimbstraightupamountain.I’vewatchedamonsterofamanwintheheavyweighttitlebysoundly
whippingaman-sizedmonster.I’vewatchedawhip-fastmasterdefeatanotherwhip-fastmasterwith
onestrokeinkarate.I’vewatchedamasterviolinistholdanaudienceinthrall.
Ontheotherhand,I’vewatchedMarinoSantosusemoreofhimself,whiletouchingmorepeoplemorepermanentlythananyoneofthesefiveeverdidorevercould.
Yet,totheworld,anyoneofthefivemightbeconsiderednoblerthanMarinoSantos,becausetheireffortswouldbeconsideredtobemoreworthwhile.
Idisagree.IbelievethatMarinoSantosinventedanewparadigmofserviceforthe
world.Ibelieveheheroicallyexceededthelimitsimposedbytheexistingparadigm
and,intheprocess,bybeingdiligent,conscientious,interested,deliberate,andintelligent,holdsthepotentialtopositivelyaffect—ifallelsegoesright—theemotions,standards,behavior,andqualityoflifeofmillionsofpeoplebyhisexampleofdoingordinaryworkinsuchanextraordinaryway.
Ibelievehetookmoreofhimselftotaskthanmostpeopleeverwill.Heextendedwhathefoundtotheoutsideworld,creatinganewmodelofbehavior,anewrigorofattention,anewlevelofconsciousness,bothintenseandrelaxedatthesametime.
IknowinmyheartthatMarinoSantoswouldnevermakeCheezBalls.Youknowit,too.Theremusthavebeenamomentintimeatthebeginningofthefreemarket
system,whenthehumanmindandthehumanheartwereasked,“CheezBallsornot,whatdoyouthink?”
Andthehumanbeingresponded,“Screwit,CheezBallsitis.”Thiswasamomentwhensomethinginoffensivelytrivialinserteditselfinto
thehumanequationassignificantlymoreimportantthanitwas;whensomethingmuchlesstrivial—somethingsobiginuswecouldn’tgetourarmsaroundit—foundnojustificationforhangingaround,sowesatdownonthesidelinesstuffingCheezBallsintoourfacesinstead.Theyweresoeasy,soavailable,sotasty—sodead.
Whatisitaboutusthatmakesitsoeasytobesoself-indulgent?WhatisitaboutafreemarketsystemthatseemstobreedCheezBalls
WhatisitaboutafreemarketsystemthatseemstobreedCheezBallslikeflies?
WhatisitaboutusinafreemarketsystemthatnevergrowstiredofyetanothervariationontheCheezBallstheme,whetherwe’repoets,philosophers,mathematicalgiants,computerprogrammers,dentists,doctors,collegeprofessors,truckdrivers,orpoodleclippers?
Inafreemarketsystem,somehow“PasstheCheezBalls,please!”alwayswinstheday.
But,waitasecond,CheezBallsaren’ttheproblem!
It’sthisthingaboutdying.It’sthisthingaboutalwaysbeingpreparedtodietoday.It’sabouthavinglivedsoimpeccably,havinglivedsocorrectly,having
carriedoneselfwithsuchpresence,suchdignity,havinglivedwithsuchawareness,suchinnervitality,suchgrace,suchintensityasif“afirewereraginginyourhair.”
It’sourchoiceofbeingthat’stheproblem.It’sthatwhichseparatestheE-MythEntrepreneur—andEnterprise—
fromalltheothers.It’sthewarriormerchant’spenchantforlivinginastateofgrace.
Iknowamanwhocansellanything,andhas.I’llcallhimMurray,butthat’snothisname.(Heknowswhoheisifheisreadingthis.)ThereissomethingaboutMurraythatdisturbsme.
Hehastheeyeofapirate.YouknowwhatImean:ithasacertainslanttoit.Itshineslikeahardblackstonecaughtjustrightinthesun—asifyoucouldwalktheplankforallhecares;ithasnothingtodowithhim.
YetMurraybelievesheisexactlytheoppositeofthat.
Murraybelievesinhimselfandwhathedoes.Murrayisallbusiness,andbusinessisallMurray.AsIsaid,hecansellanything,andhas.ToMurray,thereisnodifferencebetweenthings.Heistotallydevoidofvalues.Buthedoesn’tbelievethatabouthimself.Hebelieveshehasvalues;hetalksaboutthemallthetime.Hebelievesthatheisascientistandthathetrulyunderstandswhat
Hebelievesthatheisascientistandthathetrulyunderstandswhatpeoplewant.
Hebelievesthatheisascientistofthepassions.
Hehasmadeastudyofthem.Hehasdiscoveredthewordstousetoprovidepeoplewithwhathebelievestheywant.Hehasdiscoveredthewaytoprovidepeoplewiththeillusionthatthey’regettingwhattheywant.Hehasfoundawaytobelievethatwhathedoesisimportant.Murrayisamagician.
Hesellsthisservicetopeople.Hecallsitmarketing.Murraydoesn’tcarewhattheydowithit,solongasitinterestshim.Thatis
onethingthat’sinterestingaboutMurray:althoughhewillsellanything,hewon’tsellanythingthatdoesn’tinteresthim.Ithastopresentauniqueproblem,ithastobedifficulttodo,ithastopresentMurraywitharealchallenge,andithastohavethepotentialofmakingMurrayanawfullotofmoney.
Ifitwon’tmakeanawfullotofmoneyforMurray,itdoesn’tmatterhowbigachallengeitpresents.
ToMurray,everyonehastobesomeplace.Itreallydoesn’tmatterwhere,aslongasit’sworthMurray’stime.
MurraysitsinabigfatchairattheheartofAmericanbusiness.Thesewordswon’tletmego.
Attention,concentration.Intention,discrimination.Balance,organization.Excellence,innovation.Touchingtheworld,communication.
Thesewordsarevalues;thesevaluesarewords.Theyareattheheartofthesubjectathand.AlthoughyoumightthinkI’mtakingacircuitousrouteindealingwiththe
issuesofwhatmakesagreatbusiness,I’msimplynotdoingitinabusinesslikeway.
Butthat’sjustthepoint.Ihaveneverseenagreatbusinessthatdoesthingsinabusinesslikeway!
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
(ListentothePodcastversionatMichaeleGerber.com)
ThisistheE-MythPerspective.Service,excellence,andcaringarenotsomethingyoucandoanythingabout.Theyareastateofmind.Whenabusinessisbereftofsuchqualities,itisbecauseitsfounders,itsowners,anditsmanagersarebereftofsuchqualities.Theydon’tcaretoserve.Itdoesn’tbotherthemthattheirperformanceisless,byfar,thanexcellent.Theydon’tcareaboutthebusinessbecausetheysimplydon’tcareatall.
Greatcompanies,E-MythEnterprises,areheadedbygreatpeoplewhoarepossessedbyaburninghungertocreatesomethingperfectintheworldthattheycan’tfindinthemselves.
IdeasresideattheheartoftheE-MythPerspective.ThosewhoarepossessedbytheE-MythPerspectivearedrivenbyideas.
CHAPTERNINE
SHOOTINGFORTHEMOON
Henotbusybeingbornisbusydying.
—BobDylan,“It’sAlright,Ma(I’mOnlyBleeding)”
Ifbullshitwaswater,we’dhavealldrownedbynow.
—Anonymous
Iwanttotalkaboutthewordpoweragain—awordeasilyusedandjustaseasilymisunderstood.
Whatispower,afterall,buttheabilityto“do”?Ifwearetrulytopossesstheabilityto“do”anything—totrulypossess
power—itgoeswithoutsayingthatwemustbeconscious,present,awake,andfreeofallinternalandexternalinfluencesatthemomentof“doing.”
Inshort,to“do”—topossesspower—requiresthatwechooseto“do,”thatwemakeaconsciouschoice.
Ifoneacceptsthatdefinition,thenthosethingswedoautomatically—inreactiontoevents,feelings,orinternalprogramming—cannotbeconsideredtrue“doing,”inthattheyarenottrulydonebyus,butbyourhabits.
Forourpurposehere,thatsortof“doing”canmoreaccuratelybecalled“nondoing,”oractingouttheunconscious.Insuchcases,“it”didit,youdidn’t;therewasnoconsciouschoice.
Itcanbearguedthatmost,ifnotall,ofwhatwe“do”isofthissortof“doing,”outofourcontrol—justhappensreflexively.
Thinkaboutit.Howmanytimeshaveyoulashedoutatsomeoneautomaticallybecauseheorshetriggeredanoldrage?
automaticallybecauseheorshetriggeredanoldrage?Youdidn’tdothat,“it”did.Howmanytimeshaveyourepeatedaphysicalactliketakingoffyourshoes,
firsttheleftshoe,thentheright?
Youdidn’tdothat,“it”did.It’softenbeensaid,“Icoulddothatinmysleep.”Infact,wedo.Moreoftenthanwe’dcaretothink.
Okay,here’stheprobleminanutshell.
ItismybeliefthatatrueE-MythEnterpriserequiresanE-MythPerspective.
AndtohaveanE-MythPerspectiverequiresanE-MythMind.AndmydefinitionofanE-MythMindisonethatiscapableof
objectivity.Itisamindthatwatchesfromtheoutsidewhatisgoingonintheinside,
amindthatcangrasptheentiretyoftheconditioninwhichwefindourselves—atonce.
Itisamindthatcanseizethewhole.Imaginealllifeasweknowitoperatingwithinacircle.Theobjectivemind—theE-MythMind—wouldbeonethatcouldlive
outsideofthatcircle,whilestilllivinginsideofit.Theobjectivemindwouldbetotallyunidentifiedwithwhat’sgoingon
insidethecircle.Unfortunately,topossesssuchamindwouldrequirealevelof
awakeness,ofawareness,ofunbufferedhonesty,ofclarity,thatsimplydoesnotexistinustoday,ifiteverdid.
AndIbelievestronglythatratherthangettingbetter,ourconditionisgettingworse;thatthelikelihoodofusbecomingmoreobjective—thatis,lessidentified—isslim,andgrowingslimmerallthetime.
AlthoughIobviouslyamnotanoptimist,neitheramIapessimist.NorwouldIcallmyselfarealist;I’mtoofargoneforthat.
But,somewhereinthemiddleofallthis,IfindmyselfwithaparticularlyvexingproblemforwhichIhaveyettofindaname—aproblemthatplaguesmeineverythingIdo,andeverywhereIgo,andwitheveryoneImeet.And,lestyoudoubtme,Idomeaneveryone,noexception.
Myproblemhastodowiththeabsenceoftruepower.
Myproblemhastodowiththeabsenceoftruepower.EverywhereIgo,andineverythingIdo,Iamcontinuallyconfrontedbythe
overwhelminglyobviousand,tome,deeplydisturbingfactthatallofthepeopleIcomeintocontactwith—everylastsoul—aretotallyandunconscionablyasleep.Gonzo.Outtolunch.Onautomatic.Unconscious.
Inshort,unobjective.Ratherthanbeingunidentifiedwitheverythinggoingon—thatis,objective
—everyoneImeetishopelesslyidentifiedwithwhat’sgoingon—thatis,subjective:hopelesslyinseparablefromtheeventsofwhichtheirlivesaremade.
Inshort,IhavecometotheunhappyconclusionthatifthesampleIhavetakenoftheworldatlargeisareasonableapproximationofthetruth(andIbelieveanairtightcasecouldbemadetosupportit),then,despitewhatmostofuswouldliketobelieve,thereisnosuchthingassomeonewhocouldhonestlycallhimselforherselfanindividual—someonewhoiscapableoflivingbothinsideandoutsidethecircleattheverysametime,whoiscapableofachievingastateoftrueseparation,thatis,objectivity.Ifthatisso,andIbelievewithallmyheartthatitis,thenthecompanies(letalonethelives)ofsuchpeoplearedoomedbeforetheyevenbegin.
Ibelievethatisthereasonsofewcompaniesachieveevenamodestdegreeofsuccess,or,putmoredirectly,whysomanycompaniesfail.
Ithasnothingtodowiththeabsenceofbusinessacumenorbadluck,asiscommonlysupposed.Ithasmoretodowiththeunconsciousnessofthepeoplewhocreatethem,andthepeoplewhomanagethem,andthepeoplewhoworkinthem,andthepeoplewhobuyfromthem,andthepeoplewhoselltothem,andthepeoplewholendtothem.
Ithastodowithus.Withallofus.Andonlywithus.Withtheunconsciousconditioncalledhuman.
IfIweretravelinginatightsocialcircle,withlimitedinteraction,amongasmall,selectgroup,youcouldjustifiablysaytome,“Expandyourhorizons,Michael,andyourproblemswillbesolved.Notallpeopleareliketheonesyou’vedescribed.”
Unfortunately,atleastforme(afterall,it’smyproblem),that’snotthecase.Idon’ttravelinatightsocialcircle.Icomeintocontactwiththousandsofpeopleeachyear.Adiverserangeofpeople.Peoplewhoworkinevery
imaginablesectorofoursociety.Peoplewhodojustabouteverythingpeoplecandointhisworldofours.Scientists,craftspeople,artists,mechanics,musicians,businesspeople,ditchdiggers,speakers,politicians,carpenters,bankpresidents,writers,technicians,computerprogrammers,loanofficers,managers,millionaires,paupers,greatthinkers,anddullards.And,despitealltheirdifferences,Ifindittobetragicallytruethatallofthem—everysinglelastlivingoneofthem,withoutexception—arecaughthopelesslyandhelplesslyinthemuckandmireofdeep,lasting,impenetrablesleep.
Theyareallhopelesslyidentifiedwithwhattheydoandwithwhotheythinktheyare.
Theyarefullofthemselves.Theyfinditimpossibletoseparatethemselves,forevenamoment,fromthe
foolstheyhavelearnedtoplay,fromthecostumestheyhavegrownaccustomedtowear.
AndthisisastrueofthepositivethinkersIhavemetasitisofthenegativethinkersIhavemet.ItisastrueatthefarleftoftheNewAge,asitisatthefarrightoftheOldAge.
Whethertheybehumanistsorreligionists,whethertheybeapoliticalordeeplypolitical,whethertheybeconservationistsortheopposite,whateverthatwouldbe,allofthem,everylastsingleoneofthepeopleIhavemet—yes,I’mtalkingaboutyouandme—allofus,aredead-to-the-worldasleep.
NobodyIhaveevermetlivesoutsidethecircle.Everysingleoneofushasanagendawithwhichwehavebecome
inseparablyidentified;arolethatfitsustoatee;awayofmovingthroughtheworldthathasbecomeourpersona,ourcomfortzone,thereflectionweseeinourmoment-to-momentmirror;thepersonagewecontinuetoconveyouttheretotherestoftheworld,andinheretoourselves,saying,overandoveragain,automatically,withoutseriousquestion,inathousanddifferentinstants,toeveryoneandeverything,“That’sme!”
Untilfinally,weareouragendas.Andintheprocess,weceasetotrulybe.
Therecanbenofreedomaslongaswelivethisway.Therecanbenotruepowerwhenoneisasleep.Therecanbenotrueresponsibilitywhenoneoperateslikeamachine.
AndsoIamnotsurprisedatthedumbconclusionswe“businesswriters”reach.
Iamnotsurprisedthat,asyousearchforsolutionstoyourbusiness
problems,youareconstantlybeingcajoledtostayinsidethecircleratherthantostepoutsideit;thatyouareconstantlybeinginvitedtobecomemoreidentifiedratherthanlessidentified;thatyouarecontinuallybeingofferedanewtechnique—anewrhetoric,anewbelief,thenewestwisdom,thelatestinsight—whetheritbe“megatrends2015,”orSixSigma,or“NewAgethinking,”or“theinformationage,”or“theinformationworker,”“excellence,”or“creatingchaos,”or“one-minutemanaging,”or“leadershiptraining,”or“win–winrelationships,”orwhateverit’scalled.Becausewhoeverwroteitisspeakingaboutstuffinsidethecircle,frominsidethecircle,andallonecangetfromthereismoreofthesame.
Itcannotsetusfree!Fortheproof,lookaroundyou.Nomatterhowmanynewthoughts,nomatterhowmanynewideas,no
matterhowmanynewbreakthroughsin“humantechnology”comeourway,theyallwillmoveusinonlyonedirection,downthestreetofoursleepintoadreamworldofdelusion,noneofthemhavingmadeadifference,noneofthemcapableofmakingadifference,andnoneofthemeverwillmakeadifferenceforyouorforme—notuntilsomethinginus,inyouandme,changes.
Theproblemisthatwethinkwe’reawake.
Thatwethinkwealreadyareobjective.Thatwethinkwealreadyareindividuals.Thatwethinkwealreadyarefree.Thatwethinkthatwethink!
Theproblemisthatwethinkwe’remakingdecisionsallofthetime,wheninfactwe’renot.
Wehaveneverevenlearnedhowtomakedecisions.We’redreaming,hopelesslyadriftinaseaofreactiontoconditionsthat
control,cajoleus,romanceus,anddeludeus.
Wecallthesereactions“passion.”Wecallthesereactions“moralindignation.”Wecallthesereactions“desire.”Wecallthesereactions“thoughts,”“hope,”“interest,”and“creativity.”
Andweenduppraisingthesereactions,asthoughtheywerequalities
instead.Wecallourreactionseverythingbutwhattheyreallyare:associations,
dreams,neuralconnections,fantasies.Andthenwetakeonestepfurther—andthisisthemalevolentstep,the
deadlystep,thestepofpsychopathology.Wesaytoourselves,thatsinceallofourconditioningishabitual,then,to
developourselves,tobecomemoreeffective,tobecomebetterpeople,tobecomemorehuman,allwehavetodoisdevelopbetterhabits.
Voilà!Ratherthanattemptingtocomeawake,oursolutionistobecomebetterat
sleeping.Thisisaverycomplicatedproblem.Itcouldgoinanydirection.Ontheonehand,I’mpresumingtoprovideyouwithaprescription,a
template,forbusinesssuccess.Ontheotherhand,I’mtellingyouwhysuccessisimpossible,giventhewayyouandIare.
Whataconundrum!
Howdowegetaroundthis?Howdowepursuetheimpossible?Isthisacul-de-sac,oristhereawaythrough?
Thefirststepinthiscomplicatedprocessisforustoagreeaboutourcondition.Wemustagreethatnomatterwhatanyonetellsus,nomatterhowmanypsychologistswelistento,nomatterhowmanypromisesexpertsinenlightenmentandhumanbehaviormake,nomatterhowmanyidealistic,enraptured,NewAgesongsofhopecomeourwayabouttheevolutionofman—aboutthecivilizingprocess,aboutthegloriousfuturethatweallthoughtawaitedusintheglorious“ThirdMillennium”inwhichwearealreadyseveralyearsentrenched,theageofthe“empoweredindividual”—wearenot,andhavenotbeenbecoming,morehumanastimewearson.Wearebecominglessso—bytheminute.
Examplesabound.Iwalkinacountrywhereviolentkillings,rapes,robberies,assaults,and
burglariesoccureverysingleday.Inincomprehensiblenumbers.Iwalkinacountryinwhichthevastmajorityofhighschoolgraduates
cannottellyouwhenAbrahamLincolnservedaspresident,donotknowwhereelectricitycomesfrom,cannotcalculatethecircumferenceofacircle,cannot
readatbetterthantenth-gradelevel,cannoteventellyouinwhatstateNewYorkCityislocated.
Iwalkinacountryinwhichtheincidenceofbatteredwivesandbatteredchildrengrowsexponentiallyeachyear,andinwhichhumanabusesounfathomable,soinhuman,sodegradingismorepervasiveworldwidethanatanyothertimeinhistory.
IwalkinacountryinwhichIhaveheardthatatleast26.2millionofushaveadiagnosedmentaldisorder,inwhichroughly50percentofourmarriagesendindivorce,andinwhichatleast1.5million—oneoutofevery200—Americansareaddictedtococaine.
Iwalkinacountry—inaworld—inwhichourforestsaresystematicallybeingdestroyed,ourwaterissystematicallybeingcontaminated,ourairissystematicallybeingpoisoned,ourwildlifeissystematicallybeingannihilated,ourpetsaresystematicallybeingabandoned,ourpeoplearesystematicallybeingignored,andourfamiliesaresystematicallybeingdecimated,atever-increasingrates,withnosignofabatementinanyquarter.
Iliveinacountryinwhichatleast42,000peoplearekilledeveryyearinautomobileaccidents.
InwhichIhaveheardthat75percentofourfamiliesaredysfunctional.Inwhichourentertainmenthasbecomeincreasinglymorejuvenile,
increasinglymoreviolent,increasinglymoreinane.Walkdownthestreetsofanylargecity.TrythesubwayinNewYork.Yes,it’sbetterthaninthepast,butit’sstill
notgood.Andthisiswhattherestoftheworldisshootingfor?Tobecomemorelikeus?Totradetheirsleepforoursleep?SomuchfortheNewAge.Somuchforbeingmorehuman.Weareawalkingdisgrace.But,takesolace.Atleastit’snotourfault.We’reallsoundasleep,forGod’ssake!HaveyoueverwatchedourCongressinthemidstofdebateonimportant
issues?Didyouobservehowsleepworks?Didyouseeourloftyrepresentatives’mouthsmoving,theireyesinert,their
limbsflailingaway,theiremptysleeves,theirshoesfilledwithstraw,theiremptymouthsutteringemptyphrases?
Doyouunderstandwhatwasgoingon?Didyoubychancegetapictureofyourselfwatching,yourmouthmoving,
Didyoubychancegetapictureofyourselfwatching,yourmouthmoving,youreyesinert,yourlimbsflailingaway,youremptysleeves,yourshoesfilledwithstraw,youremptymouthutteringemptyphrases?
Wereyoushockedbywhatyousaw?Allofthesolutionsoutthere—everylastsingleoneofthem,nomatterhow
worthwhiletheymaysound—meanabsolutelynothingifwe,thepeopleofthisworld,remainthesame.
Ifwecontinuetothinkwe’reawake…butwe’renot.Ifwecontinuetoactasthoughwearemakingconsciousdecisionsthatwe
havechosentobewhoweare.Butifweseehowpowerlesswehaveallbecome—howmuchofourselves
wehavewillinglygivenup;howreadywehavebeentoliveinthisunconsciousstate,automaticallywalkingthroughourlivesasthoughfastasleep,doingourroutines,ourtapdances,singingourlittlesongs,andrepeatingourlittleritualsthatlongagolostanysemblanceofmeaningorgrace—ifwecanseethat;ifforoneshuddering,remarkableinstantwecanrecognizethatweareasleep,andwecanseethatwearepassivelyrecitingourowndogmas,ourownprescriptions,ourownautomata,ourownritualizedbeliefs,thenourpurposecomesfleetinglytolife.
Itisatthemiraculousinstantwhenwefirstseeourselves—whenwerecognizehowprogrammedweareandhowbadlyweneedtobereprogrammed.Itisatthispower-packedinstantwhenwecomeface-to-facewithourselves,notfrominsidethecircle,butfromoutsidethecircle—lookingdown,sotospeak.Itisatthisinstantwhenanythingispossible,andonlyatthisinstant,whenforafleetingmomentwearewideawake.
Thisistheinstantofawakening.Itisaninstantofintenseenergy,ofintenselife,ofintensevitality.Itistheinstantwithinwhichthepossibilityoftruefreedomcanbetruly
feltandborn.
Andsomyprescriptionbeginsandendswithus.Myprescriptionsaysthat,tobuildanE-MythEnterprise,onemustbeinterestedinfarmorethanjustbusiness.
Merebusinesscannotholdtheinterestofanintelligentpersonforlong.Onemustbeinterestedinthedignityofone’sownlife.Andofthelivesofthose
aroundus.
Onemustbeinterestedindoingwhatonedoeswiththeutmostattention,withtheutmostcare,withtheutmostinterest,andwiththeutmostengagement.Onemustsetstandards:difficultstandards,standardsthatriseabovetheordinary,standardsthatonewouldbewillingtosharewiththeworldasexemplarsofhumanbehavior,standardsthatonewouldbewillingtopublishforallpeopletosee,standardsthatonewouldbewillingtobeheldaccountableforandwouldbeeagertobemeasuredagainstalwaysandforever.
Onemustbeinterestedinhowthingslook,andhowthingsfeel,andhowthingswork,andthen,finally,inthemoney.Onemustknowthatthemoney,whilenotkey,isaseriousconsideration,butonlyaconsideration.Itisnottheprimaryreasonorajustificationforbeinginbusiness.
Onemustforgettheeconomicmodelofreality.ForanE-MythEnterprise,thereisnoeconomicmodel.Theeconomicmodel
isamyth.ForanE-MythEnterprise,thereareonlypeople,andcosmicforcesthatnone
ofusunderstands,andWhatever,orWhoever,createdallthis.Onemustpayattentiontopeople:towhatisimprisoningthem;towhatis
frustratingthem;towhatisinhibitingthem;towhatisrestrainingthem;towhatisdeprivingthemofarich,energizing,intelligent,andforcefullife.
Inordertopayattentiontoothers,onemustbeconsciousofoneself.Onemustbehonestwithoneself.Onemustcontinuallywatchoneself.
Noexcuses.Nodefenses.Nolies.Nodishonesty.Noexit.
Onemustbecomeasoldierontheconsciousfront.I’mnotsayingthattobuildanE-MythEnterpriseonemustbeconscious—
that’stoomuchforanyonetoask.
WhatIamsaying,however,isthatonemustwishtobeconscious.Onemustwishtobewhole.
Onemustwishtobewhole.Onemustwishtobeobjective.Onemustwishtobeimpartial.Onemustwishtobedetached.Onemustwishtobefreeoftheautomaticresponses,theunconscious
behaviorthatfillseachofourdays.Onemustwishtobehumaninthefullestsenseofthatword.WhenIthinkofJohnAnderson…WhenIthinkofMaryConnerBrown…WhenIthinkofMarinoSantos…WhenIthinkofMerle…WhenIthinkofeachextraordinarysmallbusinessownerIhavehadthe
privilegetoworkwithsinceIstartedmybusinessthirteenyearsago…
WhenIthinkofallthat,Ithinkofthewishthatsawusallthrough.Notthewishtobesuccessful—thatwasneveritforanyofusandneverwill
be—butthewishtodowhatwesetouttodointhemosthumanwaypossible.Thewishtobetruetosomethinghigherthanthemultitudeofcompeting
prioritiesthatcontinuallydragusdowntoearth.Thewishtotouchsomethingquieter,finer,deeper,moreresolute,more
compassionate,morecourageous,morechallenging,moreworthy,morehuman—moredignified—inthecourseofourlives.
Itismycontentionthatnobusiness,nomatterwhatitdoes,canbecomegreatifitspeoplewishforanythinglessthanthesethings.
AnE-MythEnterpriseisabusinessthattakespersonalresponsibilityfortheconditionoftheworlditfindsitselfin;fortheconditionofthepeoplewithwhomitinteracts;fortheconditionoftheirchildrenandtheirchildren’schildren;fortheconditionoftheveryqualityoflifeitself.
Abusinesswithconscience.Thatis,Ibelieve,theonlymissionworthyofthename.Tocreateaworldinwhichpeoplearepresent,honest,open,andalive.Tocreateaworldinwhichpeoplemakeconsciousdecisionsingood
conscience.Thatiswhatshootingforthemoonisallabout.Andonecannotdoitinone’ssleep.Itrequiresallwehave.Anditrequiresitnow.
DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS
(ListentothePodcastversionatMichaelEGerber.com)
AnE-MythEnterpriseisabusinessthattakespersonalresponsibilityfortheconditionoftheworlditfindsitselfin;fortheconditionofthepeoplewithwhomitinteracts;fortheconditionoftheirchildrenandtheirchildren’schildren;fortheconditionoftheveryqualityoflifeitself.
Abusinesswithconscience.Thatis,Ibelieve,theonlymissionworthyofthename.Toaccomplishthismissionrequiresallthatwehave.
ToBuildYourE-MythEnterprise…GoToMichaelEGerber.com
BecauseMichaelGerberisTheE-MythCoach…
ForimmediatehelpandaFree
E-MythEnterpriseCD,calltheMichaelGerberTeamat760-752-7912
SEARCHABLETERMS
Note:Entriesinthisindex,carriedoververbatimfromtheprinteditionofthistitle,areunlikelytocorrespondtothepaginationofanygivene-bookreader.However,entriesinthisindex,andotherterms,maybeeasilylocatedbyusingthesearchfeatureofyoure-bookreader.
abuse,problemof,175accidie,83action.Seerightactionactualization,business,48–49agenda,personal,171AIG.SeeAmericanInternationalGroupInc.AmericanInternationalGroupInc.(AIG),4AnaheimBulletin,38,45Anderson,John
E-MythEnterpriseMatrixand,42–48asextraordinarybusinessowner,180asquintessentialentrepreneur,37–42
AppleComputerCompany,27,78,100discriminationinbusiness,29hands-oninnovationand,32asprocess-oriented,119–20visualidealand,56–58
AppleComputerStore,VisualMatrixcomponentsand,78AppleExperience,154–55archetype,54–55associations,asreactions,173attention,29
concentrating,forbusiness,26–27selfconsciousnessand,179–80asvalue,162
automobiledeaths,175awake,172.Seealsoconsciousawakeness,levelofobjectivemindand,167awakening,86
awakening,86MasterGameand,84fromunconscioushabits,177–78
AwakeningtheEntrepreneur,xiiiBabka,Rink,154balance,asvalue,162BearandPigfable,xix–xxbehavior,newmodelof,158beliefs,177.Seealsovaluesbestwayprocess
fordoingeverythingbetter,120–21great,andgreatperson,118–19predictabilityand,120questionsfor,121–22,139–40
BestWayskill,31–32,35–36Blanchard,Ken,xviiBlanchard,Margie,xv
breakthrough,delusionof,172Brown,MaryConnerbusinessasmediumfor,103asextraordinarybusinessowner,180instinctand,100resourcefulnessof,97–98rulesforemotionallyvitalbusinessand,107–10,111–13statemandatesand,103–7vocationalschooland,95,101–3
business.Seealsogreatbusinesses;smallbusiness;success,inbusinessactualization,categoriesofpreferenceand,48–49allureof,17answersassolutionsin,13–14,21buildinggreat,25–27,82–83commercial,vs.humanenterpriseand,69–70comparedtomoney,15–16comparedtowar,82–83conscienceandconsciousnessin,181costofvisualpreparation,65–66death/rebirthofconstruction,127–38dignityoflifeand,178–79discriminationin,28–29eliminationofprimaryfrustrationand,121–22,124–25,139–40energyflow,26–27essentialingredientsawakein,86
essentialingredientsawakein,86existence,andpeople’sdesire,7–8failure,causeof,99,169fiveskillsfor,creation,25–36FordCoupas,idea,42–45freemarketand,3–4,7funin,xxivgameof,4,13,14,43,92–94ideaaslifegiving,24–25invention,xxi,xxii,10–11aslivingthing,16–17management,withoutvalues,150–51meaningof,topeople,xxivasmedium,103missingmeaningin,23–24mission,183moneyassecondaryto,179MOREconceptand,13–14,20,21,24owners,extraordinary,180peopleasproblemfor,8–9,20PigandBearfableand,xix–xxprimaryinfluencersand,18–19asproductofpeople,69–70rulesforemotionalvital,107–10,111–13sellinganillusionin,160–61serviceasincompletein,12–13,21small,95–107,180statemandates,andsurvivalof,104–6successtemplatefor,5–6survivalin,14–16synchronicity,48–50synergy,xxivtransformationof,67–69,74–78useofVisualMatrixin,70–74valuesand,150–51visualimpressionand,53–55,62vitality,98–99working,vs.workforliving,130–38
business-as-a-product,69–70
caring
aspuritanvalue,149asstateofmind,150,163
CEO.SeeChiefExecutiveOfficer(CEO)chaos,172intoorder,throughorganization,35organizingpeopleand,xiv,30
CheezBallsE-MythPerspectiveand,156–57asmetaphorfortrivial,159Santosand,158
ch’i,businessenergy,26–27ChiefExecutiveOfficer(CEO),98–99choice,conscious,166choiceofbeing,E-MythEnterprise/Entrepreneursand,160Churchill,Winston,33circleoflife
inside/outside,atsametime,168–69livingoutside,171lookingdowninto,andawakening,177–78operatingin,169stayinginsideof,171–72
clarity,167cleanliness.Seeorderclients,73color,componentofVisualMatrix,70–71
transformingbusinesswith,75–76commercialenterprise,vs.humanenterprise,69–70communication,32–33,36
coloras,70–71detailasvisual,72–73E-MythEntrepreneursand,93formas,71order/scaleas,72assecondruleofvitalbusiness,108,111asvalue,162visualimpressionsas,53–56
company.Seealsobusiness;greatbusinessesoneintenmillion,xxiiasproductofimagination,xxiii–xxiv
asproductofimagination,xxiii–xxivconcentration,34E-MythEntrepreneursand,93asfundamentalskill,25–27innovationand,32rightactionand,29asvalue,162
conditioning,habitualandculturingunawareness,173conflict,inpragmaticidealist,152–53confusion,vs.disorientation,85CongressoftheUnitedStatesofAmerica,176connection,thirdruleofvitalbusiness,108,111–12conscience,businesswith,xvii,109
E-MythEnterpriseand,181asmission,183
consciousawareness,powertodoand,165choice,powertodoand,166ofoneself,179wish,qualitiesof,180world,creating,xvii
consciousness,newlevelof,158consumersociety,moneyand,141contradiction,headsofE-MythEnterpriseand,153–54control
pointsforremodelingsystem,137–38process-orientedcompanyand,125
conundrum,forsuccess,174creativity,asreaction,173customer(s),86
askingmyth,xiv,12–13,21moneyperception/integrityand,143,146–47preferencesand,7unconscious,andbusinessfailure,169
decisionmaking,vs.reactions,173delusionofawake,172,177deRopp,RobertS.,83–84desire,asreaction,173detail,componentofVisualMatrix,72–73
detail,componentofVisualMatrix,72–73transformingbusinesswith,75–77
discrimination,34–35E-MythEntrepreneursand,93innovationand,32providingintention,28–29asvalue,162
disintegration,offamilylife,175Disneyland,65–66,72Disney,Walt,61–62,92
businessasmediumfor,103contradictionin,154love-hate-relationshipwith,90–91
disorientation,vs.confusionand,85doing/thinking,165–66
identificationwith,169–70NewAgeand,171–72
dreams,asreactions,173drugaddiction,175
ease,organizationproducing,xveconomicmodel,asmyth,179educationalincapacity,xvemotionalideal
Brown,andbusinessdemonstrating,102–7fiveessentialskillsaspartof,93–94MasterGameand,83–84Merle,saxophoneteacherand,87–90assecondcategoryofpreference,81,111sevenrulesof,107–9,111–13
emotionalingredient,ofE-MythEnterprise,xxiii–xxivemotionalpreferences,42–50storyillustrating,95–107
emotionalproduct,ofimagination,xxivemployees.Seealsopeoplecustomeraskingand,xivgreatbusinessand,86moneyperception/integrityand,143,146–47preferencesand,7unconscious,andbusinessfailure,169
unconscious,andbusinessfailure,169vitalityof,andCEO,98–99
empoweredindividual,lossof,174–76E-Mythbooks,xxiE-MythEnterprise,50.Seealsogreatbusinesses
childlikepartcreating,94–95choiceofbeingand,160asconscious,180contradictioninheadof,153–54creatorschangingrulesand,92–93economicmodelasmythfor,179emotionalidealand,81E-MythPerspectiveand,151,163,167fouressentialingredientsof,xxiiiimaginingand,xxilove-hate-relationshipand,90–91,92managementofimpressionsand,55–56personalresponsibilityand,181,183prescriptionfor,178rules/traditionsand,92–93valuesatheartof,162winningOlympicsand,xiii,xxi
E-MythEnterpriseMatrixAndersonand,42–48componentsof,42instinctiveuseof,43
E-MythEntrepreneurschoiceofbeingand,160fiveskillsand,92–93asinventors,xxiiirarepeople,astrue,xxi
E-MythMastery,xiiiE-MythMind,objectivityand,167E-MythPerspective
asblessing/curse,153–55commoditiesreflectingvaluesin,157E-MythEnterpriseand,151,163,167exceedingcommercialreality,156–58ideasatheartof,155pragmaticidealistsand,151–52requiringE-MythMind,167service/excellence/caringand,149–50,163
service/excellence/caringand,149–50,163TheE-MythRevisited,xiiiTheE-Myth,xiiienergy
asbusinessch’i,26–27overutilizationof,30,35
enterprise,humanvs.commercial,69–70entertainment,violent,176entrepreneur
Andersonasquintessential,37–42clubforgreat,xxiifrommanagerto,91MBDprogram,xxiii
entrepreneurialspirit,povertyof,56,59–61exampleof,62–65
environmentaldestruction,175essentialingredients,86
forbuildingE-MythEnterprise,xxiiTheE-MythClub,xxii
excellenceaspassion,forpragmaticidealist,153aspuritanvalue,149pursuitof,102–3rhetoricfrominsidecircle,172asstateofmind,149,163asvalue,162
fable,ofPigandBear,xix–xxfailuretothrive,business,99,172fantasies,asreactions,173FederalExpress(FedEx)
costofvisualpreparationand,66–67asprocess-oriented,119–20,120VisualMatrixcomponentsand,78
FedEx.SeeFederalExpressfeelingloved,seventhruleofvitalbusiness,109–10,113
financialidealintegrity/moneyand,146–47moneyconversionand,141–43
financialingredient,ofE-MythEnterprise,xxiii–xxivfinancialinstitutionsperceptionofmoneyand,143
perceptionofmoneyand,143preferencesand,7
financialpreferences,42–50financialproduct,ofimagination,xxiv“Thefishstinksfromtheheaddown,”99FlyingHigh&FieldstoneGreen,77–781947FordCoup,37–42
asbusinessidea,42–45form,componentofVisualMatrix,71
transformingbusinesswith,75–77freemarketsystem
allureofbusinessin,17breedingself-indulgence,159businessbuildingin,3–4businessrequirementin,7elevationoftrivialin,159failure,vs.success,xiv,4–5fifthruleofthumbin,14–16firstruleofthumbin,7–8fourthruleofthumbin,13–14moneyin,143–45,146–47MOREconceptand,9–11,13–14,20,21secondruleofthumbin,8–11thirdruleofthumbin,11–13
frustration,primary.Seeprimaryfrustrationfunbusinessas,xxivinnovationand,32
functionalidealbestwayprocessand,121–22,139creatingprocess-orientedcompanytoachieve,129–36owningprocess,examplesof,119–20people-oriented,vs.process-orientedcompaniesand,115–19,126–28primaryfrustrations,eliminating,122–25,140ThreeDayKitchensand,133–38
functionalingredient,ofE-MythEnterprise,xxiii–xxivfunctionalpreferences,42–50
functionalproduct,ofimagination,xxivgame,ofbusiness,4,13,14–16,43
recreatingnew,92–93rewardsvs.,93–94
games,life
games,lifeidentifying/inventing,83–84rulesand,84
AGoodDaytoDie,155Gothicchurch,scaleof,72grace
lossof,andawakening,177stateof,andwarriormerchant,160
greatbusinessesbuilding,25–27,82–83businesslikeoperationsand,xvconsciousnessandconsciencein,181keepingessentialingredientsawake,86workingsynergistically,xxiii
groups.Seeprimaryinfluencershabits
psychopathologyofdevelopingbetter,173unconsciousdoingand,166wakingupfromunconscious,177–78
Hanselman,Steve,xxiiHarrison,Jim,155HeartfeltConstruction,primaryfrustrationeliminationand,124HearthstoneAuto,primaryfrustrationeliminationand,124Hitler,Adolf,33TheHolisticHealthInstitute
Brownand,95statemandatesand,103–7
Horejs,Vit,xxhuman
behavior,becomingexemplary,178–79,180condition,becomingworse,174–76enterprise,vs.commercialenterprise,69–70technology,delusionand,172unconscious,condition,169
IBM,86
salesapprenticeshipat,90idea(s)
1947FordCoupasbusiness,42–45behindbusiness,24–25
behindbusiness,24–25E-MythPerspectiveand,155,163primaryinfluencersand,18–19transmissionof,33
identificationwithdoing/thinking,169–70invitationto,more,171–72
illiteracy,problemof,175illusion,sellingof,161–62iMac,58imagination,companyasproductof,xxiii–xxivimagining,E-MythEnterprise
and,xxiImpactReports,73impressions,managementof,peoplevs.,55–56individualempowered,asfalse,174–76individual
livingbothinside/outsidecircle,169thinking,vs.being,172–73
industrysegmentation,byconstructioncompany,131–32influencers.Seeprimaryinfluencersinformation
age/worker,172componentofVisualMatrix,creativeusesof,73transformationofbusinesswithVisualMatrix,75–77
innovation,31–32,35–36E-MythEntrepreneursand,93asvalue,162
integrityfinancialidealand,146–47moneyvs.,145
intentiondiscriminationand,28–29asvalue,162
inventionofbusiness,E-MythEnterpriseand,xxi,xxiioflifegames,83–84
iPhones,27,29,58iPods,27,58IronMancontest,157iTunes,58
job,asbusinesstopeople,xxivJobs,Steven,27,57–58,92
businessasmediumfor,103controllingAppleExperience,154–55love-hate-relationshipwith,91understanding,andAppleComputer,100
Jung,Carl,archetypesand,54
Kennedy,JohnF.,33TheKenBlanchardCompanies,xviiKing,MartinLutherJr.,33kitchenremodelingsystem
analyzingvariablesfor,134identifyinginefficienciesin,135–36managementsystemfor,137–38
Kroc,Ray,66,91businessasmediumfor,103changingcompanyrulesand,92–93contradictionin,154
leadershiptraining,172LehmanBrothers,4lenders,86.Seealsofinancialinstitutions
customeraskingand,xivunconscious,andbusinessfailure,169
LensCrafters,120letters,fromclients,73life.Seealsocircleoflife
comparedtogame,83–84developingmore,throughbusiness,28–29dignityof,andbusiness,178–79disintegrationoffamily,175ideagiving,24–25inside/outsidecircleof,168–69operatingincircleof,167qualityof,andresponsibilityfor,183
Lincoln,Abraham,33
Lincoln,Abraham,33losapasionadossinigual.See“theonlyones”love-hate-relationship
business/employer/employeeand,90–91student/teacherand,89–90
MacEvangelists,29managementofimpressions.Seeimpressions,managementofMaster’sof
BusinessAdministration(MBA),xxiiMaster’sofBusinessDesign(MBD)betterthanMBA,xxiiE-MythEnterpriseand,xxiii
theMasterGame,aimof,83–84TheMasterGame:BeyondtheDrugExperience,83–84matriarchalcommune.SeeTwinTreesMBA.SeeMaster’sofBusiness
AdministrationMBD.SeeMaster’sofBusinessDesignMcDonald’sCorporation,visualpreparationcostof,66
meaningfulwork,sixthruleofvitalbusiness,109,112–13megatrends2015,172mentalillness,problemof,175Merle.SeesaxophoneteacherTheMichaelGerberClub,xxiiMicrosoftCorporation,27mind.Seeobjectivemindmiracleofoccurrence,101–2mission,ofbusiness,183
conscienceas,xviimoney.Seealsofinancialidealbusinesscomparedto,15–16comparedtofood,141converting,tointangibles,142inherentvaluesvs.,157integrityvs.,145making,asendgame,161–62Murrayand,161–62NewAgeplatitudeabout,142perceptions,143PigandBearfableabout,xxrule,infreemarketsystem,143–45,146–47assecondarytobusiness,179
moralindignation,asreaction,173moralweight,fifthruleofvitalbusiness,109,112MOREconcept,9–11,13,20,21
MOREconcept,9–11,13,20,21AppleComputerCompanyexampleof,27businessideaand,24–25HolyGrailof,14Landof,14–15
Murraybusinessand,160–61asmagician,161makingmoneyand,161–62
mystique,ofSantos’screw,126–27
negativethinkers,identifiedwithdoing/thinking,170neuralconnections,asreactions,173NewAge
identificationwithdoing/thinkingfor,171–72ironyof,176platitude,aboutmoney,142rhetoricfrominsidecircle,172
NewCo,Weissberg,Marty,and,61NewYorkCity,175,176NezPerce,155
objectivemind
E-MythMindand,167thinking,vs.possessing,172–73
objectivityachievingtrue,169E-Mythmindand,167subjectivityvs.,168
obstacles,overcoming,E-MythEnterprisesand,xiii–xivOldAge,170OldCo,Weissberg,Marty,and,61one-minutemanager,172TheOneMinuteEntrepreneur,xviiTheOneMinuteManager,xvii“theonly
ones,”126–27,131kitchenremodelingsystemand,134–38
orderasfirstruleofvitalbusiness,107,111transformingbusinesswith,76VisualMatrixand,72
VisualMatrixand,72ordinary,vs.sublime,usesofVisualMatrix,73–74organization
E-MythEntrepreneursand,93innovationand,32producingease,xvrightactionand,29oftime/spaceandwork,xiv,30–31,35asvalue,162
originalresult,xiv,xxii
paradigmofservice,new,158paralysisofwill.SeeaccidieParker,Charlie,152passion(s)
E-MythEnterprisesand,xiii,xxiexcellenceas,forpragmaticidealist,153
peopledefinitionofbusinessfor,xxivemotionalpreferencesof,95asmanageable/unmanageable,inbusiness,8–9managementof,vs.impressions,55–56organizationof,xiv,30asproblem,8–9,20unconscious,andbusinessfailure,169
people-orientedcompanyfindingbestpersonand,117–18process-orientedvs.,115–19
perceivedpreferences,foreverybusiness,7perfection,innovationand,35–36Perot,Ross,91,103perseverance,E-MythEnterprisesand,xiii,xxi–xxiiPeters,Tom,102PigandBearfable,xix–xxPixarAnimationStudios,58PizzaHut,120PositionofOne,3–21
E-Mythand,18powerof,19
positivethinkers,identifiedwithdoing/thinking,170power
powerconsciouschoiceand,166definitionof,165packedinstant,177–78true,absenceof,168,171
pragmaticidealistconflictwithin,152–53E-MythPerspectiveand,151–52
preference,categoriesof,7.Seealsoemotionalpreferences;financialpreferences;functionalpreferences;visualpreferencesbusinessactualizationand,48–49emotionalideal,81–113E-MythEnterpriseand,50financialideal,141–47functionalideal,115–40primaryinfluencersand,42,50storyillustratingall,38–41,42–48visualideal,51–80
preprogramming,visualimpressionsand,55–56present.Seeconsciousprimaryfrustration
defined,123eliminating,121–22,124–25,139–40
primaryinfluencersbusinessactualizationand,48–49businesssuccessand,18–19categoriesofpreferenceand,42,50compositionof,7primaryfrustrationand,122,140
process,bestway.Seebestwayprocessprocess-orientedcompanycontroland,125creationof,afteraccident,127–38discoveringbestwayand,121–22,139–40examplesof,119–20people-orientedvs.,115–19turningordinaryintoextraordinary,118–19
productvitality,98–99program,recognizingunconscious,177–78psychopathology,ofmoreconditioning,173puritanvalues,149purpose,fourthruleofvitalbusiness,108,111
purpose,fourthruleofvitalbusiness,108,111pursuitofexcellence
businessasmediumand,103vs.pursuedbyexcellence,102
qualities,vs.reactions,173qualityoflife,responsibilityfor,183
reactions,vs.decisions,173Reagan,Ronald,33reprogramming,regainingpowerthrough,177–78resistance,organizationproducing,xvresponses,stereotypical,andprimary
frustration,123–24result,original,xiv,xxiirhetoric,new,172rightaction
concentrationand,29organizationand,30–31,35
rituals,meaningless,177rule(s)
foremotionallyvitalbusiness,107–10,111–13E-MythEnterpriseand,92–93infreemarketsystem,7–16
rule(s)gameoflifeand,84money,infreemarketsystem,143–45,146–47
salesman.SeealsoMurray
believingoppositeabouthimself,160sellinganillusion,161
SantosConstructioneliminatingprimaryfrustrationand,125industrysegmentationand,131–32losesstarperformer,127–28
Santos,Marino,128constructionframingbusinessand,126–27creationofnewbusinessand,129–32asextraordinarybusinessowner,180kitchenremodelingbusinessand,133–38
kitchenremodelingbusinessand,133–38mystiqueofcrewand,126–27newparadigmofservicefor,158singlenessofpurposeand,125
saxophoneteacher(Merle),44,87–88bargainwithstudentand,89–90comparedtoE-MythEnterprisecreators,91–92,94–95asextraordinarybusinessowner,180aspragmaticidealist,152
scale,componentofVisualMatrix,72transformingbusinesswith,75–77
Schultz,Howard,andStarbucks,100scientist,falsebeliefandselling,161self-indulgence,infreemarketsystem,159service
asincompleteword,xiv,12–13,21newparadigmof,158aspuritanvalue,149sellingmarketingas,161–62asstateofmind,150,163
shootingformooncreateconsciousworldand,xviiinE-MythEnterprise,181–82
Sicilianexpression,99SixSigma,172skills,five
forbusinesscreation,25–36E-MythEntrepreneursand,92–93
Skinner,B.F.,96sleep,impenetrable,xv
habitualconditioningand,173identificationwithdoing/thinkingas,170–71recognizing,andawakeningfrom,177–78
smallbusinessemotionalpreferencesofpeopleand,95–107owners,extraordinary,180
Smith,Fred,66–67,91,103SongofCentralEquilibrium,26space,organizationof,30–31,35sportinggoodsstore,VisualMatrixand,67–69,74–78
sportinggoodsstore,VisualMatrixand,67–69,74–78standards,extraordinary,178–79Starbucks,100
organizationoftime,spaceandwork,31VisualMatrixcomponentsand,78
statemandates,forvocationalschool,103–7stateofgrace,warriormerchantand,160stateofmind,service,excellenceandcaringas,150,163subjective,vs.objective,168Subway,asprocess-oriented,119–20success,inbusiness,7
conundrum,174newlearning/thinkingand,xvtemplatefor,5–6temporarysolutionsand,13–14visualidealand,58,79–80visualimpressionand,53,62
success-proneness,6–7Supercuts,asprocess-oriented,119–20suppliers,86
customerasqueenand,xivperceptionofmoney/integrityand,143,146–47preferencesand,7
surface,seeingbeneath,62SweetWaterMedicalOffice,primaryfrustrationeliminationand,124synchronicity,inbusiness,48–50
T’anMeng-hsien,26template
forbusinesssuccess,5–6impossibilityof,forsuccess,174
Templeton,Dink,154“TheRedWheelbarrow,”51thinking.Seealsodoing/thinking
beingvs.,172–73ThirdMillennium,174ThreeDayKitchens,133–38time,organizationof,30–31,35touchingtheworld,162traditions,E-MythEnterpriseand,92–93
traditions,E-MythEnterpriseand,92–93transformation,ofbusiness,usingVisualMatrix,67–69,74–78TwelveIronSandals,xxTwinTrees,96–97
unconscious,168
actingoutthe,166behavior,freeingoneselffrom,180habits,awakeningfrom,177–78mind,asstorehouseofimages,53–55people,andbusinessfailure,169state,andCongress,176
values
businesseswithout,150–51devoidof,salesman,161atheartofgreatbusiness,162inherent,vs.makingmoney,157puritan,149
visualidealAppleComputerCompanyand,56–58businessesdisplaying,66–67criticaltosuccess,61–62exampleof,51–53familybusinesslacking,58–61,62–65asnecessity,79–80transformingbusinessinto,67–69,74–78unconsciousimpressionsand,54–55VisualMatrixcomponentsand,70–73
visualimpression,51–53,55visualingredient,ofE-MythEnterprise,xxiii–xxivVisualMatrix
sixcomponentsof,70–73,79–80transformationofbusinessusing,67–69,74–78
visualpreferences,42–50,62–65newstandardof,57–58sixcomponentsof,70–73,79–80
visualpreparation,costof,65–66visualproduct,ofimagination,xxiii–xxivvisualrenaissance,58vitality,ofCEOandbusiness,98–99vocationalschool
vocationalschoolbirthof,95,101–2survivesstatemandates,103–7
WaldenTwo,96WaltDisneyCompany,58,119–20war,businesscomparedto,82–83warrior
businessperson,156concept,ofliving,155–57merchant,156–57,160
WashingtonMutual,4Watson,Tom,86,92–93Weissberg,Marty,58–65
transformingbusinessand,67–69VisualMatrixand,74–78
Weissberg,Morris,58–61,65,67–68Weissberg’sArmy-NavySurplusStore,59,65
transformationof,74–78Weissberg,Sol,58–61,65,67–68
VisualMatrixand,74–78Williams,WilliamCarlos,51,53win-winrelationships,172thewish,keytogreatbusiness,181work
asbusiness,topeople,xxivdoingordinary,inextraordinaryway,158forliving,vs.workingbusiness,130–38organizationof,xiv,30–31,35
Zune,27
ACKNOWLEDGMENTS
Ofcourse,nobookisbornwithoutinspiration,education,anddog-dirtyhelp:Tomynew-foundteamatCOLLINS,includingmypublisher,HollisHeimbouch,mysenioreditorandnurse,BenSteinberg,andthestronganddedicatedproductionteam,HelenSong(don’tyoujustlovethatname?),NicoletteCutler,WilliamRuoto,andElliottBeard,thankyouall.
Tomygreatnewfriendandworkhorseeditor,StevenGottry,wherewouldIbewithoutyou?
Tomyfriendforallseasonsandcommitted(attimesreluctant)agentandcautioneer,StevenHanselman,we’vegotalotmorelefttodosonorestingonyourlaurels.
Tomyexpansive,dedicated,cherishedandcherishingwife,LuzDelia,thisisthesecondoneyou’veseenmethrough.
ToKenBlanchardwhohasnowwrittenforewordstomylasttwobooks,butisnot,himself,tooforwardatall,thankyouKenforyourcareandpassionateinterestinmeandallthingsentrepreneurial.
Tomyreadersbythemillionsandtomyassociatesinallmyvariousventures,includingE-MythWorldwide,InTheDreamingRoom,ChiefDreamerEnterprises,ClubEntrepreneurNetwork,TheEntrepreneurCapitalCorporation,Biz-Dog.com,TheMichaelGerberClub,andmany,manymore,thankyouallforyourzealouscommitmenttotheoutcomeweallcrave—thetransformationofsmallbusinessworldwide.
Andtoyou,dearreader,ifyou’vegottenthisfar…thisisallaboutyouandwhatyouhopetodo…howcoulditbeanyotherway?
AbouttheAuthor
MICHAEL E. GERBER is the legend behind the E-Myth series of books,which includes The E-Myth Revisited, E-Myth Mastery, Awakening theEntrepreneurWithin,TheE-MythManager,TheE-MythPhysician,andTheE-MythContractor.Histitleshavecollectivelysoldmillionsofcopiesworldwide.Heisanentrepreneurandanin-demandspeakerandconsultant.Gerber isalsothefounderofE-MythWorldwide,ChiefDreamerEnterprises,IntheDreamingRoomLLC,CertifiedCapitalAdvisors, theEntrepreneurCapitalCooperation,andtheMichaelE.GerberClub.
www.MichaelEGerber.com Visit www.AuthorTracker.com for exclusiveinformationonyourfavoriteHarperCollinsauthor.
ALSOBYMICHAELGERBER
AwakeningtheEntrepreneurWithin,TheE-MythRevisited,
andE-MythMastery
Copyright
THEE-MYTHENTERPRISE.Copyright©2009byMichaelGerber.AllrightsreservedunderInternationalandPan-AmericanCopyrightConventions.Bypaymentoftherequiredfees,youhavebeengrantedthenon-exclusive,non-transferablerighttoaccessandreadthetextofthise-bookon-screen.Nopartofthistextmaybereproduced,transmitted,down-loaded,decompiled,reverseengineered,orstoredinorintroducedintoanyinformationstorageandretrievalsystem,inanyformorbyanymeans,whetherelectronicormechanical,nowknownorhereinafterinvented,withouttheexpresswrittenpermissionofHarperCollinse-books.
AdobeDigitalEditionMay2009ISBN978-0-06-192071-4
10987654321
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*http://www.smallbusiness.com/wiki/Venture_capital.
*TheMasterGame:BeyondtheDrugExperience,deRoop,RobertS.NewYork:Dell,1974.
*TheMasterGame:BeyondtheDrugExperience,deRoop,RobertS.NewYork:Dell,1974.