Hey Struggledorks, this week we tackle John’s “Home Truths”, the day-in day-out qualities required to make it in the Business Game.
“Wealth is created by SYSTEMS AND PROCCESSES (S&P)! “
I find this a very interesting statement. We have addressed “Wealth” a couple times over the length of the Struggledork endeavour. We have spoken about ways to achieve “Wealth”; the kind of Business Types required to build Wealth; and what are key calibrators of Wealth. But what I think what we might have neglected to is to define what “Wealth” means to us. Wealth by general definition is “an abundance of valuable possessions or money”; but in reality in my opinion, this is off base. For myself, and Struggledork ethos for that matter, Wealth is not the stagnant state of “Money in the Bank”. It is the FLOW of money in and out. It’s the Customer that comes back and keeps coming back for twenty years; it’s the ability to identify what BUILDS the Business and what ERODES the Business; it’s the ability to make decisions based on FACT; not opinion. It’s the REPETITION of patterns that grow your business. As John says, “Wealth is the ability to apply information into more-with-less knowledge”.
So when I read Johns Lessons;
“Lessons Learned:
1. There are very few personalities that create wealth by who they are
2. I’m not one of those personalities
3. That with S&P’s, anyone can create enduring wealth
4. I understand the trial and error process and it takes a lot of patience, time and effort to create great systems.
5. Successful people do whatever they are doing to the best of who they are in any moment in time. Successful people in my opinion:
• Are Focused
• Are Disciplined
• Are Hard workers
• Are Aware and have Presence
• Set high standards
• Use time to their advantage…… Does not mean having telephone systems to block out opportunities, or not complete any task because someone else is more important. Time will expand or contract according to how one masters it. Limiting time limits opportunities, and;
• Demand a lot of themselves and everyone around them”
It really takes me back to something I observed when I just started to work. Like most young people, I started working in a McDonalds Franchise. I remember really taking a look at the Owners and thinking, “Yeah they work hard, they are focused, they are disciplined, they are aware in their business, they drive people with high standards, they utilize their time, they definitely DEMAND what they want from around them, but they really aren’t anything special.” Never once did I see a flair of innovation; or a distinguishing character strength; or great business acumen.
What I really saw was the manifestation of near-perfect Franchising Systems and Process’ from McDonalds Corporations. And when I say near-perfect, I mean Customer Retention Techniques; State of the Art ERP/ POS systems; Training Programs and Platforms; Quality Assurance Procedures; Management Hierarchy systems; Cleanliness Standards, Marketing to die for; and Quarterly Evaluations to guarantee the compliance and optimal running for the Franchise. I remember managing a Shift where I lost points on the pickles being too close together on a Big Mac that our Regional Representative was eating. It was these exact and precise Systems and Processes which made my bosses (the owners of the franchise) wealthy. In fairness, McDonalds has been refining their Systems and Processes since 1955.
The point for me was clear though. These very average people became extraordinary through very specific Word and Number Calibrations/ Processes and maintained very clear and simple Agreements with their Customer base.
For me, the frustration was then seeing personality-driven wealth in people like Warren Buffet or Oprah Winfrey. Not frustration in their success; frustration that I don’t see what Buffet saw in any business deal; or couldn’t connect with people like Oprah can. To say they do not have Systems and Processes to measure and calibrate their wealth is definitely untrue; but System and Processes is not the core of their success. Who they are and what they see is the core to their success. The truth is their “Genius” was what made them truly wealthy.
In contrast to these individuals whose Wealth is personality driven; I feel it only right to cite a truly Systems and Processes Billionaire. Jim Walton, youngest son to Sam Walton, Founder of Wal-Mart, is now worth $26.8 billion. Wal-Mart is truly as Systems and Processes driven as it comes; pulling its Wealth through a simple in theory Process of; buy in bulk; distribute savings to consumer; which is duplicated (or repeated) worldwide. When I read of Jim Walton, I can’t see the Personality to generate Wealth; what I see is Systems and Processes so strong it transcended “Wealth” into “Intergenerational Wealth”. This is not to devalue Jim Walton; I am positive he holds ALL qualities John labels as requisite to create Systems and Processes Wealth. My point is the core of his Wealth is strictly Systems and Processes.
To conclude, I must be honest with myself. To what Tom Peters says in his findings; I, like most people, would truly like to believe that I am the Personality which can Build Wealth through simply Who I am; and What I see. Sadly, I don’t think that is the case.
I, like the rest of us, will have to attempt to make my way in Wealth creation through Systems and Processes. Perhaps the silver lining is….. at least there is another way to achieve Wealth!
Until next week, Bill the Blogger
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