Leaders are readers; learners are earners.
Please invest 2 to 8 minutes to keep current and review fundamentals. Thank you!
Top 5 Biz Books of 2023 (and Runners-Up)
The speed of business is increasing exponentially, thanks to AI and other technologies, and the only way to stay a few steps ahead is to make learning a priority. With that in mind, here are my top five business books for 2023, along with very worthy runners-up – and an earlier book I missed, my favorite book of them all.
Here’s a link to my ScaleUps.com article for easy sharing – and below the full list with my reasons for choosing. Enjoy!
PEOPLE
Foolproof Hiring: Powerful, Proven Keys to Hiring HIGH Performers by Brad Smart and Chris Mursau
Think AI can replace interviewing? Think again. While AI can help you source and whittle your candidate list to your top three candidates, the human element is still important. In Foolproof Hiring, Topgrading guru Brad Smart reveals his latest refinements to the Job Scorecard (his much-better alternative to a job description), a process he has refined over five decades. You’ll also get a crash course in tandem interviewing and a reference check process that will ensure you inevitably choose the best of those top three.
At half the length of Smart’s classic book Topgrading, Foolproof Hiring is easier to navigate—and chock full of new information. And if you need more support, check out the inexpensive SaaS tools Smart’s firm has created to streamline the pre-screening process and the virtual Topgrading Master Class to take your hiring leaders thru the process step-by-step. Topgrading is still the #1 approach to selecting A-players, and Foolproof Hiring makes it easier to create buy-in and learn.
Runner Up – Made Without Managers: One company’s story of creating a self-managing workplace by Team Mayden
I fell in love with this book the moment I read the Foreword by Margaret Heffernan, one of the most insightful CEOs and writers of our time. It is the real-world story of how UK-based Mayden, with 112 employees, has scaled in a truly self-managed, flat organization. Everyone is doing work that matters vs. managing the people doing the work!
2023–based on Gary Hamel’s interview with Gallup CEO Jim Clifton–is the year the term “manager” should be retired from all organizations–and replaced with leader or coach. Place this book on your desk so you see the cover 24/7 as a reminder to think twice before adding managers to your workplace.
STRATEGY
Power and Prediction: The Disruptive Economics of Artificial Intelligence by Ajay Argrawal, Joshua Gans and Avi Goldfarb
Meta’s focus on a “Year of Efficiency” in 2023 added a half trillion dollars to its market cap, and one key strategic contributor has been the implementation of AI in all aspects of the organization. Whereas traditional AI has yet to return much on the billions invested – think self-driving cars – generative AI (the type that refers to machine learning systems that can create content such as text, images and code) is immediately disrupting the economics of every industry.
Helping business leaders navigate the use of AI are these three Rotman School of Management professors, authors of AI guide Prediction Machines. They have written another practical and easy-to-read book in Power and Prediction. As the title implies, generative AI gives everyone in the organization more power to get things done and helps guide decisions by providing better ways to predict what to do next. Wherever you need more power and prediction, that’s where you apply generative AI first. Let this book be your guide.
Runner-Up – What a Unicorn Knows: How Leading Entrepreneurs Use Lean Principles to Drive Sustainable Growth, Matthew May and Pablo Dominquez
Four primary forces work against any object in motion (including a growing firm): drag, inertia, friction, and waste. To counter each are five principles of lean the authors outline in this book. Other books on my 2023 list address these principles individually, in depth, starting with Principle 1: Strategic Speed (see Move Fast and Fix Things).
The other principles are Constant Experimentation (see Right Kind of Wrong below); Accelerated Value, focused on the customer experience; Lean Process, emphasizing how less is more; and Esprit De Corps, representing the need for an experienced and inspired team to make all this happen – and underlining why Foolproof Hiring is so critical. Read this book to build on what you’ve learned from Scaling Up.
EXECUTION
Move Fast & Fix Things: The Trusted Leader’s Guide to Solving Hard Problems, by Frances Frei & Anne Morriss
You can move fast without breaking people or things in the process, according to Harvard strategy professor Frances Frei and partner and co-author Anne Morriss, co-authors of my favorite strategy book Uncommon Service. Emphasizing the need for speed, which is critical to scaling they write: “Speed unleashes your organization’s energy and reveals where you’re going. Trust convinces your stakeholders to come along for the ride. Think about whatever you’re building as a plane taking off for a new destination: no one’s getting on board without confidence in the aircraft, and without enough speed, you’re not even getting airborne.”
Complete with a requisite four-box model they call the FIX map (Fast, Iterative Excellence), Move Fast & Fix Things will show you how to operate in the “Accelerating Excellence” box. Their book provides a practical approach to make this happen.
Runner Up – Right Kind of Wrong: The Science of Failing Well by Amy Edmondson
There are experiments and then there are mistakes – it’s important to distinguish between the two! Harvard professor Amy Edmondson, best known for her psychological safety research (so critical to team effectiveness), tackles the topic of failure in Right Kind of Wrong. We often learn more from our failures than our successes, but there are many nuances to that statement, which Edmondson uncovers.
Notes Edmondson in this HBR interview, leaders should do a thorough post-mortem after every failure, whether it was productive or not, to ensure that it does not repeat itself. “A failure, even an intelligent failure, in new territory, new discovery, is no longer intelligent the second time it happens,” she writes.
CASH (Best Business Biography)
Elon Musk by Walter Isaacson
10xing goals is for wimps! Elon Musk has figured out how to put more things and people into space the past five years than all countries combined before him – and for 1/30th the overrun costs of NASA. No matter how you feel about him, there is no doubt he’s the quintessential entrepreneur alive today. Anyone organizing people to get things done will learn valuable insights on how to scale a vision and business from every page in this 600+ page book.
What is most impressive is how Musk goes back to first principles in all aspects of his businesses – questioning and challenging the way everything has been done in the past. And he stays purpose-focused throughout his journey, pushing hard for the sake of something bigger than making money, which is precisely why he’s the richest person on the planet. That seems not to matter to him – he has no big toys or homes, etc. If you only read one 2023 book, this is the one.
Runner-up – No other business biography in 2023 comes close to matching Elon Musk.
PERSONAL
Hidden Potential: The Science of Achieving Greater Things by Adam Grant 
“What look like differences in natural ability are often differences in opportunity and motivation,” notes Adam Grant in his latest runaway best-seller Hidden Potential. From the opening story of how a Harlem high school chess team tied for first up against elite teams with prodigies trained from an early age, the book details how anyone can succeed at anything if they know how.
One key finding: Your kindergarten teacher matters. And if you didn’t get the right teacher, you and your children can do other things to make up for lost time! One clue in your search for a guide: Character. Notes Grant, “Character is more than just having principles. It’s a learned capacity to live by your principles.” Please read Grant’s latest book and everything else he authors.
Runner Up – Emotional Intelligence Habits: A Powerful New Way to Increase Your Emotional Intelligence by Travis Bradberry 
The #1 predictor of personal excellence, Emotional Intelligence (EQ), is an important skill to master. In this follow-on book to the multi-million copy bestseller Emotional Intelligence 2.0, Travis Bradberry outlines the micro-behaviors, and habits that support them, in improving your EQ in four areas: (1) self-awareness, (2) self-management, (3) social awareness and (4) relationship management.
As Bradberry notes, “Habits are the compound interest of self-improvement.” He’s spent the last decade better understanding the “how” of EQ and shares his insights in this easy-to-read book.
THE ONE I MISSED
The Captain Class: The Hidden Force That Creates the Greatest Teams by Sam Walker
The Jim Collins of pro sports, Sam Walker compiled a list of all the sports teams in the world and looked for those which significantly dominated their sport for a sustained period of time. Winnowing the list to 17 iconic teams, including a women’s volleyball team in Cuba to my F.C. Barcelona soccer team during the years of Lionel Messi, Walker sought the factors which created these dynasties.
Thinking he would find multiple factors including the coach, A-players, size of budget, etc., he instead found only one factor that correlated to sustained success – the team captain!! The captain, like Tom Cruise’s character in Top Gun Maverick, is willing to take on the senior leadership; is first in and last out; isn’t loud and boisterous; knows each person on the team and how to nudge/encourage them in one-on-one conversations, and leads the team by example. Identify the right team captains and the senior team can relax, knowing the team can sustain success.
Order a box of 20 Scaling Up and Mastering the Rockefeller Habits books
Want to save 50% over the price on Amazon? Get the box of 20 Scaling Up books here and the box of 20 MRH books here for less!
Planning to Exit – Critical Whitepaper
Selling your firm, for its maximum value, is the most important negotiation in which a business owner will participate. You are typically negotiating with sophisticated buyers who have done hundreds of acquisitions whereas this is often your first rodeo. And these buyers have a formula for ripping you off – and it works, stealing tens of millions from you. Seeking help, owners discover the big M&A firms, especially those specializing in your industry, are more beholden to the buyers than the sellers (they will tell you otherwise). Email me to get a whitepaper on how to maximize your valuation and avoid the psychological games buyers play [email protected].
Better Book Club –
What's your team reading? Increase your books read per team member. Easy, Proven, and in the Cloud at http://www.BetterBookClub.com.
COACHING: 
Does it feel as if your business has hit a wall? If you don't see a clear path forward, it's a good time to bring in a coach. All of our Scaling Up Certified Coaches™ are masters at guiding you and your leadership team through the implementation of the Scaling Up Performance. Our promise is a custom diagnostic approach from Day 1, including how we match you with a coach. We even have a team member dedicated to helping you find the perfect Scaling Up Certified Coach.™ Schedule a complimentary, personal follow-up. Or check out our FAQs. Additional questions can be sent to [email protected]
Have you considered becoming a Certified Scaling Up Coach?
Learn more about what it takes to certify and what being a coach is like. Pop into our Coach Office Hours to talk with our coach certification coordinator and a certified Scaling Up Coach. Learn More & Register for Office Hours here >
SCALING UP WORKSHOPS:
Engage your team with interactive workshops to optimize your company’s performance.
(list of workshops below)
Barcelona, Spain – Jan 9, 2024 (Virtual)
Hong Kong - Jan 17, 2024 (Virtual)
Ontario, Canada - Jan 18, 2024 (Virtual)
Jan 19, 2024 – Columbus, OH (In-Person)
Guatemala, Mexico, Chile – January 25, 2024 (Virtual)
India - Jan 31, 2024 (Virtual)
Ontario, Canada - Feb 8, 2024 (Virtual)
Sydney Australia – Feb 8, 2024 (Day 1, In-Person)
Sydney Australia – Feb 9, 2024 (Day 2, In-Person)
Sydney, Australia – Feb 28 & 29, 2024 (2 Days, In-Person)
Auckland, NZ – March 11, 2024 (In-Person)
Ontario, Canada - March 14, 2024 (Virtual)
Hong Kong - March 20, 2024 (Virtual)
India - March 27, 2024 (Virtual)
Guatemala, Mexico, Chile – March 25, 2024 (Virtual)
Austin, TX – March 26, 2024 (In-Person)
Ontario, Canada - April 11, 2024 (Virtual)
Brisbane, Australia – May 1, 2024 (In-Person)
Portland, OR – May 8, 2024 (In-Person)
Ontario, Canada - May 16, 2024 (Virtual)
Christchurch, NZ – May 30, 2024 (In-Person)
Ontario, Canada - June 13, 2024 (Virtual)
San Diego, CA – June 25, 2024 (In-Person)
Ontario, Canada - July 11, 2024 (Virtual)
Ontario, Canada - Aug 15, 2024 (Virtual)
Ontario, Canada - Sept 12, 2024 (Virtual)
Denver, CO – Sep 17, 2024 (In-Person)
Ontario, Canada - Oct 10, 2024 (Virtual)
Fort Lauderdale, FL – Oct 15, 2024 (In-Person)
Ontario, Canada - Nov 14, 2024 (Virtual)
San Antonio, TX – Dec 10, 2024 (In-Person)
Ontario, Canada - Dec 12, 2024 (Virtual)
TECHNOLOGY:
Scaling Up Scoreboard Integrated with Salesforce, Slack, and Zapier (allowing it to connect with 1000s of systems), use Scoreboard to provide your team (working remotely even more important!) a real-time visual dashboard of cascading priorities and metrics. Get a personalized tour of Scaling Up Scoreboard to see how you can use it to better implement Scaling Up in your business.
EDUCATION:
Growth Institute Online Executive Education:
Master of Business Dynamics
Scaling Up Master Business Course
Exponential Organizations Master Business Course
Topgrading Master Business Course
Did you miss previous insights? - read here
Follow Verne on Instagram: @scalingup2.0
Connect with Verne on LinkedIn: Verne Harnish
Follow Verne on Twitter: @agilescaleup
Read Verne's Insights on Kindle http://www.amazon.com/gp/product/B003SX13YI
Sign up for Verne's Weekly Insights
*This newsletter may contain affiliate links. As an Amazon Associate, I earn from qualifying purchases. If you choose to purchase after clicking a link, I may receive a commission at no extra cost to you.
« November 2023 | Main | January 2024 »
December 22, 2023
December 15, 2023
Lamborghini; Garner’s Farm; Khan’s AI; Barcelona Food
Art should comfort the disturbed and disturb the comfortable.
Dr. César A. Cruz per Tim Ferriss
I hope you continue to astonish a mean world with your acts of kindness. And I hope that gratitude will be the pillow on which you kneel every night.
Maya Angelou about Ophrah Winfrey
Please invest 2 to 8 minutes to keep current and review fundamentals. Thank you!
Well-Deserved Smithsonian Portrait 
Entrepreneur extraordinaire Oprah Winfrey attended the unveiling of her portrait at the Smithsonian’s National Portrait Gallery this week. This CNN article provides the details including some lines Oprah quoted from the poem Maya Angelou wrote for her 50th birthday 20 years ago (lines quoted above).
Shawn Michael Warren, The Artist
Equally touching is the story of how artist Shawn Michael Warren landed the commission to paint Oprah’s portrait – sometimes the market will beat a path to your door if you put out your best work to the world (targeting the right influencer!). Please set aside 2-minutes to relish in the success of two entrepreneurial spirits.
B2B Sales Mess – How to Fix for 2024
Sales are getting tougher – I’m hearing it from all parts of the globe! In 2023 the size of big sales dropped by 36% and close ratios dropped by 15% in the B2B selling world. Why? Old ways of selling in a new world of business don’t work. Hunt Big Sales’ (HBS) approach to landing big sales has helped their small and mid-size clients land over $20B in new sales. This is not just training, it’s a detailed process they help you design and implement to make big sales happen again and again – and it’s helped so many of my insight readers defy the odds, this is why I keep promoting their services. Book a free consultation and weather this revenue storm. CLICK HERE to contact them today.
Quality of Food – Why I Moved Back to Barcelona
Having the health and energy to lead a company is key – and the quality of your food is vital. So why is it that people in the US with gluten issues have no problem consuming the pastas and pizzas in Europe? This LifeCode article details food additives banned in Europe that are still in US foods. BTW, I’ve taken their Stem Cell 100 product for decades which has helped me stay healthy as I approach 65 in a few weeks. And the poor quality of food in the US is yet another reason I moved back to Barcelona (Sitges) last Friday – good to be back where the food is better!
Jennifer Garner’s Once Upon a Farm – $100 million
This Chief Executive magazine article details the success factors behind Once Upon a Farm, the natural baby food company. Innovative manufacturing; intense listening and interaction with customers; a world-class CEO and team; and the active involvement of superstar Jennifer Garner provide a roadmap you can use to scale your business. Please take 3-minutes to read about the details – then follow their list!!
AI Tutors Powering Khan Academy
This Fortune newsletter quotes Sal Khan, founder of Khan Academy, speaking about the Khanmigo virtual tutor:
It’s valuable for a teacher to do things like lesson planning, grading papers, reading progress reports. And the more we’ve worked on it, we realized it could do things that even transcend what a traditional tutor can do. We have simulations where you can talk to Eeyore the donkey or Jay Gatsby. Simulations where you can talk to Alexander Hamilton or Thomas Jefferson. We just launched last week an application where it won’t write your essay for you, but you can get feedback on your essays.
Lamborghini Switches to 4-Day Production Work Week
“Work less and work better” was the unions’ mantra in negotiating a 4-day workweek for some of the production workers at Lamborghini, without slashing pay. This Fortune article notes:
The idea of 32-hour weeks (instead of the traditional 40 hours) has been gaining a lot of traction following successful pilots of the program in the U.S. and U.K., pointing to big gains in productivity, health, and job retention among employees. As a result, an overwhelming majority of companies involved in the trial decided to stick with fewer hours at work.
Please invest 2-minutes to read the details of the total compensation package which includes significant increases in variable bonuses.
Critical to Align Compensation with Strategy
After a compensation consulting session this week, I realized I didn’t emphasize strongly enough, in Scaling Up Compensation, the importance of aligning your compensation strategy with the combined interests of ALL your stakeholders and the strategy of the business.
In the session, we started with the “Moneyball” stats for each stakeholder:
- Customers – what are their three measurable brand promises (Speed, Strategy, and Service – they have metrics for each)
- Shareholders – what are the value drivers of gross margin in their “unit of one economics.”
- Employees – what are the core values driving culture?
These metrics form the foundation for establishing promotions within a job, coupled with wide pay bands. This provides employees a defined “career path” to making more money without having to move into management! Employees progress by earning the right to serve higher gross margin customers (members). And the annual bonus is aligned with increasing the gross margin percentage and gross margin dollars per dollar of total compensation. Now all stakeholders are aligned to deliver on what customers want (jobs to be done) while maintaining great margins and employee productivity without violating core values.
“Because” a Robert Cialdini Insight
Several of you wrote to let me know the use of the word “because” following a request was a powerful insight from the godfather of influence, Dr. Robert Cialdini. Not surprising, the guru that shared this didn’t credit Bob – something ChatGPT needs to correct as well!! Bob’s two books Influence (updated in 2022) and Pre-suasion provide crucial insights for all biz leaders. Both are worth re-reading once a year.
Use “Because” to Reinforce Value Drivers and Core Values
Scaling Up Certified coach Rob Nankervis emailed me, noting:
I advise clients, when they're speaking with their team, to keep connecting ideas for their people i.e. 'We've invested in this because it’s a key plank of the strategy'. 'We love how Margaret did this for our customer because it’s such a great representation of our Can Do value.’
“Real Work” Moves the Flywheel
Rob also suggested, after I mentioned Spotify’s focus on eliminating those working on work instead of doing work, that he has his clients connect the work of each team member to its role in accelerating the flywheel of the business. A reminder, the starting point of Jim Collins’ flywheel is your #1 brand promise. All strategic and tactical decisions like compensation they align with this, rewarding work that ultimate delivers on what customers want.
Order a box of 20 Scaling Up and Mastering the Rockefeller Habits books
Want to save 50% over the price on Amazon? Get the box of 20 Scaling Up books here and the box of 20 MRH books here for less!
SCALING UP WORKSHOPS:
Engage your team with interactive workshops to optimize your company’s performance.
(list of workshops below)
Barcelona, Spain – Jan 9, 2024 (Virtual)
Columbus, OH – Jan 19, 2024 (In-Person)
Guatemala, Mexico, Chile – January 25, 2024 (Virtual)
Sydney Australia – Feb 8, 2024 (Day 1, In-Person)
Sydney Australia – Feb 9, 2024 (Day 2, In-Person)
Sydney, Australia – Feb 28 & 29, 2024 (2 Days, In-Person)
Auckland, NZ – March 11, 2024 (In-Person)
Guatemala, Mexico, Chile – March 25, 2024 (Virtual)
Austin, TX – March 26, 2024 (In-Person)
Brisbane, Australia – May 1, 2024 (In-Person)
Portland, OR – May 8, 2024 (In-Person)
Christchurch, NZ – May 30, 2024 (In-Person)
San Diego, CA – June 25, 2024 (In-Person)
Denver, CO – Sep 17, 2024 (In-Person)
Fort Lauderdale, FL – Oct 15, 2024 (In-Person)
San Antonio, TX – Dec 10, 2024 (In-Person)
Better Book Club –
What's your team reading? Increase your books read per team member. Easy, Proven, and in the Cloud at http://www.BetterBookClub.com.
COACHING:
Does it feel as if your business has hit a wall? If you don't see a clear path forward, it's a good time to bring in a coach. All of our Scaling Up Certified Coaches™ are masters at guiding you and your leadership team through the implementation of the Scaling Up Performance. Our promise is a custom diagnostic approach from Day 1, including how we match you with a coach. We even have a team member dedicated to helping you find the perfect Scaling Up Certified Coach.™ Schedule a complimentary, personal follow-up. Or check out our FAQs. Additional questions can be sent to [email protected]
Have you considered becoming a Certified Scaling Up Coach?
Learn more about what it takes to certify and what being a coach is like. Pop into our Coach Office Hours to talk with our coach certification coordinator and a certified Scaling Up Coach. Learn More & Register for Office Hours here >
Planning to Exit – Critical Whitepaper
Selling your firm, for its maximum value, is the most important negotiation in which a business owner will participate. You are typically negotiating with sophisticated buyers who have done hundreds of acquisitions whereas this is often your first rodeo. And these buyers have a formula for ripping you off – and it works, stealing tens of millions from you. Seeking help, owners discover the big M&A firms, especially those specializing in your industry, are more beholden to the buyers than the sellers (they will tell you otherwise). Email me to get a whitepaper on how to maximize your valuation and avoid the psychological games buyers play [email protected].
TECHNOLOGY:
Scaling Up Scoreboard Integrated with Salesforce, Slack, and Zapier (allowing it to connect with 1000s of systems), use Scoreboard to provide your team (working remotely even more important!) a real-time visual dashboard of cascading priorities and metrics. Get a personalized tour of Scaling Up Scoreboard to see how you can use it to better implement Scaling Up in your business.
EDUCATION:
Growth Institute Online Executive Education:
Master of Business Dynamics
Scaling Up Master Business Course
Exponential Organizations Master Business Course
Topgrading Master Business Course
Did you miss previous insights? - read here
Follow Verne on Instagram: @scalingup2.0
Connect with Verne on LinkedIn: Verne Harnish
Follow Verne on Twitter: @agilescaleup
Read Verne's Insights on Kindle http://www.amazon.com/gp/product/B003SX13YI
Sign up for Verne's Weekly Insights
*This may contain affiliate links. As an Amazon Associate, I earn from qualifying purchases. If you choose to purchase after clicking a link, I may receive a commission at no extra cost to you.
December 08, 2023
Powerful Word; Longest Tenured; Spotify CEO; Dec 13 - 14
Spotify has too many people “doing work around the work” rather than contributing to opportunities with real impact.
Daniel Ek, Spotify CEO announcing 17% layoff
If you plan for this to be your new normal, you get much more innovative.
Williams Sonoma CEO Laura Alber, on the economy
Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit.
Napoleon Hill
Please invest 2 to 8 minutes to keep current and review fundamentals. Thank you!
One Day or Day One?
I attended Joe Polish’s Genius Network annual event last weekend. One big takeaway – are you sitting around saying “one day I’ll….” or is this going to be “day one” of something you know you need to do? Implementing AI? Intermittent fasting? Exercise? Meditation? Launching a new product? Is Monday day one or another one day? Decide, because you’ll accomplish more!
Influencing Someone? Use a “Because” Statement
You know I love to give attribution, but I can’t remember who shared at Joe’s event the powerful idea of using a “because” statement. “Please take out the trash because…” is magnitudes more influential than simply “Please take out the trash.” And the guru suggested it doesn’t matter “the because” you choose!! In short, when asking anyone or any team to do something, provide a reason for doing it – add a because statement – always! Because it works!
Zero to $60 Million MSP Via Acquisition (Scaling Up Case Study)
This ScaleUps.com article details how managed service provider (MSP) founder Marc Visser is using our Scaling Up tools to integrate 14 acquisitions with more coming in Germany and Spain. With 300 people and considered an “employer of choice”, Hallo is providing a “one-stop-shop” of IT and telecom services for small to mid-sized businesses. He’s next adding two M&A team members to accelerate growth via acquisitions – creating a single trusted brand in a fragmented industry. Can you do the same?
CEO Daniel Ek’s Letter to Employees
What do you say to your team when you decide to reduce headcount by 17% after announcing positive earnings? This For the Record Spotify post is CEO Daniel Ek’s Dec. 4 letter to the employees. It’s worth 1 minute to read. In short, cheap capital drove over-resourcing (they threw people at the problems/opportunities) and found they have a substantial number of people “doing work around the work” vs. real work! Do you have the same? What are your gross margin dollars per FTE or dollar of payroll? Has it gone up or down the last 36 months? Pls have your CFO send you the numbers ASAP so you know if you’re more or less labor efficient.
Less People Paid More, Lower Total Cost
Please read our 100+ page Scaling Up Compensation book detailing the five principles that will align your compensation with your strategy – and drive more efficiency and results. It’s one of your largest expenses – “Get it right and out-of-sight!” Because getting it right can drive hundreds of percent improvement in top and bottom lines with examples to show in the book.
Longest-Serving Female CEO of a Fortune 500
Laura Albers has been with Williams Sonoma for 28 years, 13 as CEO, making her the longest-serving female CEO of a Fortune 500 by a factor of 2! Growing top line by $5 billion to $8.5 billion, this Fortune article details how she weathered the Great Recession, the pandemic, and now the slowdown in luxury goods purchases. One key is to assume chaos is the new norm. Focusing on specific niches like wedding registries and children’s furniture; “Life Stages” like baby and dorm rooms; and having recession-proof offerings – plus the addition of AI to help people design complete rooms – Laura plans to double revenue again no matter what the macro economy does. Please take 2-minutes to read how she does what she does. My key questions – what are your unique niches and what trends do you see?
Register for Next Week’s Master Class – Because Our Stuff Works!
Register for the Dec 13 – 14 (two 90-min sessions each day) plus a bonus CEO-only session Dec 12. Join hundreds of CEOs and their team members already registered for next week’s virtual Scaling Up Master Class which I (Verne) teach twice per year. Review the fundamentals, like you would golf, tennis, bowling, every six months and prepare for continued economic chaos.
Scaling Up Virtual Master Class Dec 13 – 14 (6 hours total)
Review the fundamentals of Scaling Up and energize the team going into 2024. Four 90-minute sessions taught by author Verne Harnish – People, Strategy, Execution, and Cash. Jump-start execution of these key tools/techniques. Register here.
Order a box of 20 Scaling Up and Mastering the Rockefeller Habits books
Want to save 50% over the price on Amazon? Get the box of 20 Scaling Up books here and the box of 20 MRH books here for less!
Better Book Club –
What's your team reading? Increase your books read per team member. Easy, Proven, and in the Cloud at http://www.BetterBookClub.com.
TECHNOLOGY:
Scaling Up Scoreboard Integrated with Salesforce, Slack, and Zapier (allowing it to connect with 1000s of systems), use Scoreboard to provide your team (working remotely even more important!) a real-time visual dashboard of cascading priorities and metrics. Get a personalized tour of Scaling Up Scoreboard to see how you can use it to better implement Scaling Up in your business.
EDUCATION:
Growth Institute Online Executive Education:
Master of Business Dynamics
Scaling Up Master Business Course
Exponential Organizations Master Business Course
Topgrading Master Business Course
COACHING:
Does it feel as if your business has hit a wall? If you don't see a clear path forward, it's a good time to bring in a coach. All of our Scaling Up Certified Coaches™ are masters at guiding you and your leadership team through the implementation of the Scaling Up Performance. Our promise is a custom diagnostic approach from Day 1, including how we match you with a coach. We even have a team member dedicated to helping you find the perfect Scaling Up Certified Coach.™ Schedule a complimentary, personal follow-up. Or check out our FAQs. Additional questions can be sent to [email protected]
Have you considered becoming a Certified Scaling Up Coach?
Learn more about what it takes to certify and what being a coach is like. Pop into our Coach Office Hours to talk with our coach certification coordinator and a certified Scaling Up Coach. Learn More & Register for Office Hours here >
SCALING UP WORKSHOPS:
Engage your team with interactive workshops to optimize your company’s performance.
(list of workshops below)
Guatemala, Mexico, Chile – December 15, 2023 (Virtual)
Columbus, OH – Jan 19, 2024 (In-Person)
Guatemala, Mexico, Chile – January 25, 2024 (Virtual)
Sydney Australia – Feb 8, 2024 (Day 1, In-Person)
Sydney Australia – Feb 9, 2024 (Day 2, In-Person)
Sydney, Australia – Feb 28 & 29, 2024 (2 Days, In-Person)
Auckland, NZ – March 11, 2024 (In-Person)
Guatemala, Mexico, Chile – March 25, 2024 (Virtual)
Austin, TX – March 26, 2024 (In-Person)
Brisbane, Australia – May 1, 2024 (In-Person)
Portland, OR – May 8, 2024 (In-Person)
Christchurch, NZ – May 30, 2024 (In-Person)
San Diego, CA – June 25, 2024 (In-Person)
Denver, CO – Sep 17, 2024 (In-Person)
Fort Lauderdale, FL – Oct 15, 2024 (In-Person)
San Antonio, TX – Dec 10, 2024 (In-Person)
Planning to Exit – Critical Whitepaper
Selling your firm, for its maximum value, is the most important negotiation in which a business owner will participate. You are typically negotiating with sophisticated buyers who have done hundreds of acquisitions whereas this is often your first rodeo. And these buyers have a formula for ripping you off – and it works, stealing tens of millions from you. Seeking help, owners discover the big M&A firms, especially those specializing in your industry, are more beholden to the buyers than the sellers (they will tell you otherwise). Email me to get a whitepaper on how to maximize your valuation and avoid the psychological games buyers play [email protected].
Did you miss previous insights? - read here
Follow Verne on Instagram: @scalingup2.0
Connect with Verne on LinkedIn: Verne Harnish
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December 01, 2023
Starbuck’s Strategy; Munger Investment Advice; Pink Shell Resort; CEO Job Description
Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices.
Charlie Munger’s advice to Warren Buffett
To get limitless, we need to confront what limits us.
Laxman Narasimhan, Starbucks CEO
Please invest 2 to 8 minutes to keep current and review fundamentals. Thank you!
Job Description of a CEO?
Several of you asked what the source of Scott Farquhar’s “4 Jobs of a CEO” I referenced last week. Scott was kind enough to share – it’s from a lengthy article he’s been re-reading the past decade by Stever Robbins. It details, including KPIs, the “Job Description of a CEO.” And I agree with Scott, it’s excellent!! It will take you 19 minutes to read – then regularly re-read like Scott. It might also convince you to hire a CEO!
Charlie Munger’s Investment Tips
Warren Buffett’s partner for over four decades, Charlie Munger died Tuesday at age 99. This Fortune article summarizes Munger’s investment tips that made him legendary. His best advice?
…stop searching for bargain-basement prices. It’s better to buy three wonderful businesses, after all, than dozens of average ones.
And this advice relayed in the Fortune article:
“It’s so simple to spend less than you earn, and invest shrewdly, and avoid toxic people and toxic activities, and try and keep learning all your life, and do a lot of deferred gratification,” he said at Berkshire Hathaway’s annual shareholder meeting in May. “If you do all those things, you are almost certain to succeed. If you don’t, you’re going to need a lot of luck.”
Please take 2-minutes to read a nice summary of Munger’s wisdom with additional links to Buffett’s shareholder letter this year.
Starbuck’s 3 Priorities – Can You State Yours This Simply?
This Forbes article shares CEO Laxman Narasimhan’s “Triple Shot Reinvention Strategy”:
- Expand to 35,000 locations outside North America by 2030
- Reduce costs by $3 billion
- Double barista income by 2025
CEO Laxman, working monthly as a barista around the world the past 8 months, has guided Starbucks based on firsthand intel interacting with customers and employees – not sitting in his office making stuff up!! 4th quarter earnings recently topped expectations and stock is up 22% this year.
Constraints – Talent and Distribution Points
Double barista income; more than double locations; and pay for it with $3 billion in efficiencies everywhere – seems simple and obvious – better people and more locations – and if executed should 2x - 4x valuation? Great strategies always seem obvious, though there’s a lot of detail behind each of these. For instance, doubling barista income is a combination of wages and hours. What are your key constraints to scaling in 2024 and beyond?
Have You Named Your Strategy?
Notice Laxman has given the strategy a clever name which aligns with the brand – Triple Shot Reinvention. What is the name of your 3-point strategy? A strategy without a name is like writing a book without a title! And what are your 3 key drivers/priorities for increasing the valuation of your business between now and 2030? Let a Scaling Up Coach help with both.
Dying to Tell You – Dr. Mark Goulston
Dear friend Dr. Mark Goulston is dying to tell you what mortality is teaching him. He is a death and dying specialist facing his own mortality (facing a fatal disease) and the universe is telling him to share what he's learned from fifty years of listening. He says that if he knew these things decades earlier, it would have changed his life for the better. Now you can learn them to change your life for the better... and you don't need to be dying to learn them.
Series of Short Videos – Dr. Mark Goulston
He addresses dozens of poignant, painful, and practical topics in bite-sized videos ranging from anorexia, burnout, or the two best questions to impress anyone personally or professionally. Scan the list at the link above. Mark, thanks for sharing your decades of wisdom with all of us and best of luck in staying alive.
Pink Shell Resort, Ft. Myers, FL – top NPS Score (Scaling Up Case study)
One of only 10 resorts to get back operational in six months following the devastation of Hurricane Ian, Pink Shell Resort, with the help of coach Aquiles Nunez since 2017, used Scaling Up to triple the organization in 3 years and then come back quickly after the storm. This Scaleups.com article details their successful implementation of our tools. Notes Nunez:
…an unwavering passion to ‘creating memories’ for each of their guests… has resulted in a major fanocracy that has been supporting the hotel during these hard times.
Are you and your team focused on creating raving fans. Let a Scaling Up coach help – as we have for over 82,000 firms. And enjoy a wonderful experience at the Pink Shell Resort this winter, operated by brothers Robert and Jack Boykin.
Focus on the Fundamentals – Virtual Scaling Up Master Course and Class
Prepare you and your team for 2024 by reviewing the People, Strategy, Execution, and Cash fundamentals of Scaling Up. Two virtual options:
- Scaling Up Master Class – four 90-minute virtual sessions Dec 13 and 14 (3 hr. each day). Includes 90-minute CEO-only session Dec 12.
- Scaling Up Master Course – much more personalized and in-depth training over 13 weeks with coaching and support – spread out the learning to support implementation.
Our coaching partners around the globe regularly host in-person workshops – listed below the insights – and personalized strategic planning sessions. Join over 82,000 firms which have scaled easier using our tools/techniques and prepare for 2024 with your strategic theme and priorities.
Scaling Up Virtual Master Class Dec 13 – 14 (6 hours total)
Review the fundamentals of Scaling Up and energize the team going into 2024. Four 90-minute sessions taught by author Verne Harnish – People, Strategy, Execution, and Cash. Jump-start execution of these key tools/techniques. Register here.
Order a box of 20 Scaling Up and Mastering the Rockefeller Habits books
Want to save 50% over the price on Amazon? Get the box of 20 Scaling Up books here and the box of 20 MRH books here for less!
Better Book Club –
What's your team reading? Increase your books read per team member. Easy, Proven, and in the Cloud at http://www.BetterBookClub.com.
Planning to Exit – Critical Whitepaper
Selling your firm, for its maximum value, is the most important negotiation in which a business owner will participate. You are typically negotiating with sophisticated buyers who have done hundreds of acquisitions whereas this is often your first rodeo. And these buyers have a formula for ripping you off – and it works, stealing tens of millions from you. Seeking help, owners discover the big M&A firms, especially those specializing in your industry, are more beholden to the buyers than the sellers (they will tell you otherwise). Email me to get a whitepaper on how to maximize your valuation and avoid the psychological games buyers play [email protected].
COACHING:
Does it feel as if your business has hit a wall? If you don't see a clear path forward, it's a good time to bring in a coach. All of our Scaling Up Certified Coaches™ are masters at guiding you and your leadership team through the implementation of the Scaling Up Performance. Our promise is a custom diagnostic approach from Day 1, including how we match you with a coach. We even have a team member dedicated to helping you find the perfect Scaling Up Certified Coach.™ Schedule a complimentary, personal follow-up. Or check out our FAQs. Additional questions can be sent to [email protected]
TECHNOLOGY:
Scaling Up Scoreboard Integrated with Salesforce, Slack, and Zapier (allowing it to connect with 1000s of systems), use Scoreboard to provide your team (working remotely even more important!) a real-time visual dashboard of cascading priorities and metrics. Get a personalized tour of Scaling Up Scoreboard to see how you can use it to better implement Scaling Up in your business.
EDUCATION:
Growth Institute Online Executive Education:
Master of Business Dynamics
Scaling Up Master Business Course
Exponential Organizations Master Business Course
Topgrading Master Business Course
Have you considered becoming a Certified Scaling Up Coach?
Learn more about what it takes to certify and what being a coach is like. Pop into our Coach Office Hours to talk with our coach certification coordinator and a certified Scaling Up Coach. Learn More & Register for Office Hours here >
SCALING UP WORKSHOPS:
Engage your team with interactive workshops to optimize your company’s performance.
(list of workshops below)
Charleston, SC – Dec 6, 2023 (In-Person)
Dallas, TX – Dec 6, 2023 (In-Person)
Toronto, Canada - Dec 7, 2023 (Virtual)
Wilmington, NC – Dec 8, 2023 (In-Person)
Guatemala, Mexico, Chile – December 15, 2023 (Virtual)
Columbus, OH – Jan 19, 2024 (In-Person)
Guatemala, Mexico, Chile – January 25, 2024 (Virtual)
Sydney Australia – Feb 8, 2024 (Day 1, In-Person)
Sydney Australia – Feb 9, 2024 (Day 2, In-Person)
Sydney, Australia – Feb 28 & 29, 2024 (2 Days, In-Person)
Auckland, NZ – March 11, 2024 (In-Person)
Guatemala, Mexico, Chile – March 25, 2024 (Virtual)
Austin, TX – March 26, 2024 (In-Person)
Brisbane, Australia – May 1, 2024 (In-Person)
Portland, OR – May 8, 2024 (In-Person)
Christchurch, NZ – May 30, 2024 (In-Person)
San Diego, CA – June 25, 2024 (In-Person)
Denver, CO – Sep 17, 2024 (In-Person)
Fort Lauderdale, FL – Oct 15, 2024 (In-Person)
San Antonio, TX – Dec 10, 2024 (In-Person)
Did you miss previous insights? - read here
Follow Verne on Instagram: @scalingup2.0
Connect with Verne on LinkedIn: Verne Harnish
Follow Verne on Twitter: @agilescaleup
Read Verne's Insights on Kindle http://www.amazon.com/gp/product/B003SX13YI
Sign up for Verne's Weekly Insights
*This email newsletter may contain affiliate links. As an Amazon Associate, I earn from qualifying purchases. If you choose to purchase after clicking a link, I may receive a commission at no extra cost to you.