Making a large purchase decision – or even a small one – is not an easy task. Various metrics can be used, such as, ROI (return on investment), payback time calculations, etc.
Another simple idea is to consider this fact: you can only pick two out of these three, Quality, Price, or Support.
A purchase cannot be made that will check all three boxes. We want great quality and great support, but are not willing to pay the premium price. That may be fine for some purchases, so long as we are aware that we compromise either quality or support.
I recently met a guy who was playing with his toddler on swings, as I was too. We started talking and I learnt he was a first year medical student – I thought it was interesting because he was the same age as I was. He continued with his story: coming to the US as a student, he graduated from University with a bachelor’s degree, went to work for the navy as a medic assistant for three years, upon completing his term, he was naturalized as a US citizen, then decided to go back to school for a master’s degree, return to the navy as a medic, and finally decided that it was time to start medical school to become a doctor. I was curious how he was paying for medical school, which costs over $100,000 per year. He answered, “Money is not hard to find, you just have to give up your time in exchange.” Because of his time in service, his medical education was paid for, and what little was left, he funded himself with scholarships.
Money is never going to be an excuse for not doing something you believe in. You just have to put in your time in exchange. And of course, the purpose of this time exchange must make sense.
Key takeaways: 80% is waste, 80% of decisions are idiotic; people/organizations are reluctant to change/stop the 80% waste; 80% of language is from 20% of words (useful to language learning hobbyists like myself).
Happiness: Money not spent today will compound, happiness not spent today is lost; Do fun things that make yourself happy now; create a list of Happiness islands/unhappiness islands: list top 10 in each category and eliminate the rest.
Time management vs 80/20: Not the same thing: Time management asks you to do more in less time; 80/20 says don’t do the things you don’t want to. To gain more time for doing the things you enjoy, Eliminate low value activities – just say NO. Low value activities are: things others want you to do, things you don’t enjoy doing, and things no one is interested in. Eliminate unreliable/low quality collaborators.
Work: Identify yourself as:
Like to work
Self-employed
Manage others
High need of achievement
organization people
professors
Entrepreneurs/founders
Low need of achievement
volunteer
free-lancer
secretary/manager
Types of work-people
High achievement rules: Specialize in a niche, enjoy the niche, knowledge is power, identify your core customers, identify 80/20, learn from the best, become self-employed early on, employ net-value creators, use outside contractors except for your core skills, exploit capital leverage. *Outsource everything but your core competencies. Arbitrage rule: in an organization, 80% of business comes from 20% of employees, these employees are not paid as such, if you want to get paid more, be in business for yourself, and if you can, hire like minded people. Move. Find excuse to work for the best, they see things differently, spend time differently. Self employ to capture all the value you create. If your current career/employer allows you to all of this, keeping you happy, continue doing that.
Negotiations: Have many negotiation points, keep your core points hidden in the other unimportant points; give away the dummy points, people like to win points; use time: last minute demands are more likely to be met, if more time is given, the negotiation is not favorable.
Money: Easy to get, easy to make more, but, marginal utility of money decreases sharply; Money obeys 80/20; Investing creates wealth due to compounding returns.
As a precursor to the Pace and Lead technique taught to sales professional, I would like to share my personal experience on this subject. The following is an excerpt from my upcoming book.
“If a tree falls in a forest and no one is around to hear it, does it make a sound?” You have something worth sharing, worth being listened to, and worth acting upon. The listener will most certainly benefit from what you have to say. That is the simple objective of learning the technique.
Before you can Lead, you need to Pace, and before you can Pace, you need to know about your listener. The assessment of the listener’s personality allows you to effectively frame your arguments so that your valuable message is well received. I learnt this early on in my sales career and applied it with great success. It was my first sales training course, and the instructor was a charismatic guy. I knew my own personality type as being “introverted,” and could classify people as either like me or unlike me – the “extroverts.” This was the typical two-class model my grandma even knew of. However, this was not what the extroverted instructor was preaching.
I was introduced to the social behavior classification model, also called personality types, based on the Merrill-Reid styles[1]. There are several other social behavior classifications with the similar idea, and after my sales training, I explored other classifications, however, I found the Merrill-Reid styles intuitive and practical, therefore, that’s the classification I will discuss. The charismatic sales training instructor began by explaining the four categories – Driver, Expressive, Amiable, and Analytical. Without going any further, he asked us to fill a self-assessment questionnaire first, and I encourage you to do the same. After you have done the self-assessment, continue reading.
Merrill-Reid Personality Self Assessment
In each 4-word block below, rate the words from most like you to least like you by assigning points as follows:
4 points to the word that is most like you
3 points to the work that is like you
2 points to the word that is somewhat like you
1 point to the word that is least like you
a) ____ daring b) ____ passionate c) ____ careful d) ____ agreeable
a) ____ competitive b) ____ social c) ____ accurate d) ____ calm-mannered
a) ____ vocal b) ____ appealing c) ____ sensible d) ____ warm-hearted
a) ____ dynamic b) ____ lively c) ____ demanding d) ____ good-natured
a) ____ straightforward b) ____ charming c) ____ controlled emotions f) ____ good-hearted
a) ____ commanding b) ____ gracious c) ____ reserved d) ____ laid-back
a) ____ resourceful b) ____ conversational c) ____ disciplined d) ____ considerate
a) ____ firm b) ____ attractive c) ____ diplomatic d) ____ understanding
a) ____ adventurous b) ____ friendly c) ____ mindful d ____ pleasant
a) ____ unsettled b) ____ demonstrative c) ____ politically correct d) ____ kind
Totals a) ____ b) ____ c) ____ d) ____
(Answer key at the end of the post)
Important Caveats
As you read the next section, you may self-identify as one or more of the personalities. The reality is that this is a spectrum, and people are found somewhere in between. People also behave in a certain manner based on their job title. The job examples I use for the different personalities are illustrative, as there are all kinds of personalities doing all kinds of jobs.
It is common to find partners with opposite personality types. You can ask your partner to fill the questionnaire and find out. Furthermore, if you are single and ready to mingle, then look for your opposite personality type to maximize the success of your relationship.
Analytical
Analytical people are the engineers and accountants of our world; the nerds – I can say that as I am one of them. The Analytical person decorates his offices with charts and figures, likely wear eyeglasses, and doesn’t dress well. When spoken to, he seems cold, emotionless, and reclusive. He is polite and speaks little. He thinks systematically, is detail oriented, and makes decisions based on facts. He focuses on task completion and is persistent in this pursuit. His weakness is being quiet, emotionally disconnected, and, frankly speaking, boring. Decision making takes time as they quietly analyze all available data. Not being a risk-taker, they value accuracy and avoid criticism.
Identifying the Analytical: they will speak slowly, speak little, and not express emotions.
When communicating with an Analytical, keep emotions out of the discussion and focus on solving the problem and get to the point systematically. Talk slowly, provide logical arguments based on facts, and be ready to answer the “how” questions. Don’t rush to the conclusion and allow time for evaluation of each step.
Driver
The Driver is your typical management type; the CEOs and managers of our world – people you tent to avoid as they seem controlling. The Driver demands a corner office, dresses sharp, takes power seats, and decorates his workspace with trophies and posters of expensive things. When spoken to, he seems impatient and loud. He is objective focused and believes that the ends justify the means. He talks fast, multi-tasks, takes risks, and demands action. He is direct, gets the job done, and very persuasive. Weaknesses include being stubborn, impatient, insensitive, and easily agitated. The Driver enjoys power and does not shy away from using it.
Identifying the Driver: they will speak fast, speak little, and not express emotions.
When communicating with a Driver, don’t waste time and get straight to the point. Be prepared to answer the “what” question – what’s being done, what’s the plan, etc. Don’t talk about emotions and feelings. Keep the encounter brief, concise, and organized. End with options and summarize the key takeaways.
Expressive
The Expressive is your typical storyteller; the politicians and salespeople of our world – likable, talkative, and animated. The expressive person’s work areas are messy and scattered, however, she know exactly where everything is. She like to dress colorful and flashy. When spoken to, She seem talkative and, as the name implies, quite expressive. She is fantastic with words, uses hand gestures and facial expressions, and enjoys making friends and connecting people. Her understanding of emotions and people’s motives helps her be diplomatic when confronted. She seeks adventure and loves being a member of any, and every, society. Her weaknesses involve being unorganized, impatient, reactive, emotional, and has a fear of missing out (FOMO). She is quite competitive, tends to exaggerate things, dreams big – but does not follow through, and can be seen by others as egotistical. She readily exchanges life experiences and personal information with others, for better or worse.
Identifying the Expressive: they will speak fast, speak a lot, and express lots of emotions.
When communicating with an Expressive, focus on the emotions and building rapport. Express your solution with example stories and demonstrate how it will make them look good. Be animated, talk fast, and keep things casual. Be prepared to answer many “who” questions – who said what, who is current, who’s fault, etc. Don’t present too much technical details and keep the conversation entertaining.
Amiable
Amiable folks are team players; the typical “nice guy” across the cubicle. The Amiable gets along with anyone and everyone, and is a solid team player. Her office is decorated with pictures of family, friends, and landscapes, and she love talking about them. She is pleasant to look at and dress the same. Her dependability, devotion, consistency, and ability to be a good listener, makes her a great long-term friend. As a worker, she is hard-working, trustful, loyal, avoids confrontation, and has a stabilizing effect on the team. On the flip side, she is slow to take decisive action, too compliant, won’t argue even if she is right, and dislike change.
Identifying the Amiable: they will speak slow, speak a lot, and express lots of emotions.
When communicating with an Amiable, speak slowly but systematically, don’t introduce abrupt change, be agreeable and relaxed, and use the “we” word often. Be ready to answer many “why” questions. Be willing to get side-tracked during the conversation. Most importantly, be a good listener.
Conclusion
The charismatic instructor ended the lesson by reminding us that the goal of learning this skill is to be able to deliver your message effectively – it is not about manipulation. “If a tree falls and no one is around to hear it, did it make a sound?”
Summary of the Merrill-Reid Personality Types
Answer key to the Merrill-Reid personality self assessment
a) Driver b) Expressive c) Analytical d) Amiable
[1] Study based on the research of Merrill & Roger, “Personal Styles and Effective Performance – 1981” & Bolton&Bolton’s “Social Style and Management – 1984”
What gets measured, gets managed. What gets managed, gets accomplished.
The first sentence comes from someone famous – I think Peter Drucker. The second sentence is what I came up with.
KPI or key performance indicators, are metrics that organizations use to keep their employees on their toes. It also creates, supposedly healthy, competition among coworkers. KPI is a necessary evil. Companies have the growth mindset and KPI is easy to monitor and report to shareholder, who in turn decide to continue buying shares or not.
Employees should learn to live with KPI’s. Stay on top of them and push back of they start to consume your creativity.
The drawback to KPI is that you start to lose sight of the forest for the trees. You are not sharpening the saw. You can not be as creative as you once were.
Like all other things, there is a delicate balance here and companies can’t overlook this fact. Big data and the AI tend mean KPI’s are not going away. We evolve with this and find a balance.
How do you make important decisions? Seeking advise from others who are more experienced helps. What if you can’t ask anyone else? No worries. You may try making a pros vs cons list, rolling dice, or even flipping a coin. But what if the decision to be made is just too big for a coin flip? Here, a “weighed scoring” system will help.
Pros vs cons assumes that an entry in either column will cancel one in the other column. Not all entries are equally significant. In a weighed scoring system you create buckets and assign a percent factor. All the percent factors in all your buckets add to 100%. Each bucket also has a minimum and maximum score. Let’s say 1 to 5. Do not use zeros. You add up all the buckets by multiplying with the percent factor of that bucket. Do the same for each option. You now have a weighed score that can be used to compare options a lot more systematically.
Let’s run through an example:
I need to decide what university to do my studies in. I have 10 to choose from. I create three buckets with a percent factor assigned: reputation (0.5), cost (0.25), and city (0.25). The three add up to 1 (which is 100%}. I have a minimum score of 1 and a maximum score of 5.
University
Reputation (0.5)
Cost (0.25)
City (0.25)
Score
U of CityA
5
1
1
3
U of CityB
1
5
5
3
U of CityC
3
2
2
2.5
Weighed Scoring
We seem to have a tie. We can have a closer examination between these two options and reassess them for determine the winner. Sometimes, similar to a coin toss, it’s about eliminating options as much as finding the winner.
I hope you get the idea and utilize this system in some of your more complex situations were a pros vs cons list just doesn’t cut it. This system is used by large organizations and governments to determine who to award projects to. So the system certainly works.
You have heard the other party’s comments, and you have some positive criticism of your own, but you know if you share it the other party might get offended. You have their best interest in mind, however, people get defensive when you ask them to change their outlook.
One technique to help you get your ideas across and received is to use the “good-bad-good sandwich.”
When the other person has completely presented their argument, and you have actively listened, pause for two seconds, mirror their argument and give them a positive feedback. This is the top of your sandwich. Now they are receptive to your criticism. Present your argument next. You can be direct now. When done, mention something else positive about their argument, or the fact that it is a challenging situation they are in. This is the bottom of your sandwich.
I come from a science background so I am a strong believer in the “scientific process”. You can search for the textbook definition of this term, but this is what it means to me:
The scientific process is an iterative system of solving problems by: understanding the core of the problem, taking notes from previous similar problems, documenting the steps involved, and identifying the underlying principles while arriving to the solution.
A scientist and a person who thinks scientifically are not necessarily the same person. The latter would find ways to apply the scientific process in the real world day to day life.
Algorithms
Organisms are algorithms.
-Yuval Noah Harari
An algorithm is a shortcut of accomplishing a task without having to re-discover the process again. The process is iterative and the algorithm is a “living document” – constantly evolving.
Systems vs. Goals
Everyone has a goal, and most people accomplish their goals. But the real smart cookies think in terms of systems, not goals. A goal is something you accomplish and it is gone. But a system is long lasting. It helps you be more efficient by automating the thinking process – which is the most time consuming part. As discussed so far, a system is meant to be iterative and over time evolves into a beautiful process – a well oiled machine that runs smoothly.
Standard Operating Procedures (SOP)
Now I get to the main point of this article: what is an SOP and how it will help me develop my algorithms or systems?
An SOP document is used in a science laboratory as a recipe to operate a specific equipment, or run a specific test. It is a very powerful living document meant to make the operator’s time more valuable and save the company money. This is the “systems thinking” idea vs having a goals mindset. The idea is to automate your life and put the routines to a script. This gives you more time to focus on the big picture and allow you to creatively think of the tasks that matter the most.
So how can I apply this SOP to my daily life? Well it’s quite easy.
Master SOP List
Create a spreadsheet of SOP documents that you need to refer to for daily and routine things. An example of some SOP document ideas are below in Appendix 1.
Keep this “SOP Master List” file in a master folder where you will house all your SOP documents.
SOP Template
Create a Mater Template SOP document. Here are some of the elements that are needed in a SOP:
Title must be descriptive to explain what the document is about without having to open the document
Purpose section: explains the reason for this SOP and where it is used for
Summary of changes: this is a table that lists the changes made to the document, with a date and purpose for the change. This is in reverse chronological order with the most recent change on top. This section can also be at the end of the SOP
Table of contents: this is optional – if you use Microsoft Word, there is an option to label each section with a heading, including sub-sections. Then change the view of the document to show “Navigation Pane”. This allows you to display the table of contents on the left side of the page and is clickable to jump to a section – very handy
Use tables, diagrams, handwritten or hand drawn items, links to web, etc. Anything that will help you explain to yourself what you are trying to say
Referencing other documents: this is important – you will have situations where you want to refer to another SOP or a document. Keep this other document in the same master folder and give it a descriptive title
DNR (Do Not Repeat)
In programming there is a convention for writing good clean code – DNR. Do not repeat code. The same is true in writing SOP documents. Minimalism is beneficial.
Cloud Storage
A practical tip that takes this SOP idea to the next level is to have these SOP documents available on your phone by storing it on the cloud and syncing it to your PC and all other devices. There are numerous cloud storage options out there – I personally use a combination of them for various things. This allows you to view and edit the SOP documents any time on your phone, for example. This is very handy.
Living Document
Finally, remember this SOP is a living document. The system works only if there is a way to constantly evolve and improve. This evolution can be done on the fly as needed, or having a pre-scheduled time slot, example once a year put in the calendar.
The whole experience is quite liberating as now you have created some free time by increasing efficiency.
Have fun!
Appendix 1
Some SOP examples:
SOP for morning routine: “insert further explanation here”
Money is not real. The value of the dollar bill is exactly what everyone agrees on. Time is money, you are paid dollars for your time in return. In order to get more dollars you have to be more efficient. Do more in less time, and more importantly, do high impact tasks over low-impact tasks.
But why do you want more money?
Because you want more time for yourself. You are not just chasing the money rabbit, but you have a clearly defined target in mind. You know what amount of dollars you need to sustain your lifestyle. You know what is important to you. You know thatmore free time makes you happy and allow you to pursue what is really important to you.
First visualize where you want to be. This is the very first step. Know exactly what it is that you desire. Put a number on the lifestyle you desire. The rest will follow.
Remember, the secret to success is getting started.
Fire was a game changing discovery. Some believe it was actually a gift from the gods to human kind. Regardless, the second person who heard about this new discovery, or witnessed it in person, probably did not think about how they can rediscover it. Instead they probably thought about how they can have some, or steal some.
The point I am trying to make is that do not reinvent things. Find someone who has done what you need to do and seek their help.
Mentors are not that hard to find. For example, you want to start a new bakery business. The best place to start is talk to a successful baker. Ask them about their journey. You would be surprised how approachable mentors are. They probably see themselves in their students so they genuinely want to help out.
But do not bombard your mentors with trivial questions. Research the topic on your own first. Exhaust resources to find answers on your own. Then distill your questions to a handful. Be respectful of your mentor’s time.
After you have found the mentor, got their permission, the bestbway to ask your questions is probably a short email. Keep your emails once a week. Save the responses. You never want your mentor to repeat themselves with a question they already answered.
Finally, remember the generosity of your mentors. When you are in a position to help others, return the favor and keep the mentorship karma going.
