- How do we run a business effectively?
Well you saw all those different businesses that I ran.
I believe in O.S.T. Management.
O.S.T. Management.
I'll quickly just draw that out, so everyone understands.
O.S.T. Management. That's objective, strategies and tactics.
Now what I want everyone to understand, is Entrepreneurs
usually make terrible managers. They flit in their mind.
"We're gonna do this!" Richard Branson is a classic.
I mean, just imagine having a board meeting with him.
We're going to fly into space
What? Whoa, whoa, whoa we can't even get from London
to Manchester on time Rich, on the trainy wainys,
are you sure you want to fly out to space?
We've only killed two people so far.
Unbelievable. Could you imagine having that conversation
with him? So he needs to set the objectives,
he's got good objectives but he doesn't want to come up
with the strategies and tactics.
When you meet an Entrepreneur, that's coming up with the
objectives, the strategies and the tactics,
they're busy fools. Two types of people,
Entrepreneurs who are coming up with the objectives,
"This is where we're going to go," so they're the Es.
These guys, the Ns, the Managers in the organisation,
they're coming up with the strategies and the tactics.
"This is how we get there, this is where we're gonna go."
You gotta break it up. This bit might change.
But this bit must stay on point. This must be completed
before we do the next scene. That is what pisses people off.
In all of the companies that you know, go and see schools
and stuff like that, got a head teacher, "We're going to be
a technological school of excellence". The next week he says
"No, no, no, no, we're going to be a scientific school now."
The teachers are going, "Oh my God what are we doing?"
No, he's gotta keep the objective on point and then the
strategies and tactics can change to win the objective.
So what is this? To coin a phrase, this is wall planning.
This is wall planning and this is battle planning, right?
Two types of things. Both important.
Winston Churchill, "We're going to beat Hitler."
That's the war plan, but then we'll get the Generals and
the Captains and the Ministers to come up with
the strategies and tactics. By the way guys, everything
you hear me say, ain't new. It really ain't new.
It's just stuff I know that works, and you just gotta not
veer off, because if you've got entrepreneurial DNA,
if you're over here, you're dangerous.
We are the worst people,
but the best people at the same time.
Why do Entrepreneurs get rewarded?
Because they roll the dice. That's what they're
very good at. Rolling the dice.
Management won't roll the dice, but they're crucial.
So, let's keep going, let's keep going. Because we've got
a lot to get through. Clicky wicky's over here,
clicky wicky's over here, right.
Ahh okay, so objective, strategies, tactics, everyone
gets that? CEO, Owner comes up with the objective,
management comes up with strategies and tactics.
Come in Mrs. Punctuality, come in! Unbelievable.
That's it, have you got enough coffees there sir?
I mean look at him, he's like a Starbucks reseller isn't he?
Okay so,
(audience laughter)
Typical Entrepreneur, selling coffees at Nick James' event.
So, this guy over here,
this guy is my first full time employee,
who is with me now, he's my MD in many ways.
He's my boss, and I have to put everything through him.
And I've come up with this magic formula for success
for business. I'm actually going to tell you it now.
I'm going to tell you it now. You follow this, you are
going to build something that is definitely worth cash.
I am going to tell you, the secret of success.
And you ain't gotta pay for it.
(laughter)
No, I don't think I can do it.
Oh I can!
It's E + M = S. Write it down everyone.
It's E + M = S. This is the magic formula for
building a business that is really successful.
It's entrepreneurship + management = success.
Entrepreneurship + management = success.
The faster you can employ the best management, the best
right hand man, someone that you can bounce ideas off of,
invest in that person, you sacrifice your salary for awhile,
because that's what I did. I earned nothing out of (mumble)
For three years so I could afford to pay management.
That's why I went out in my little clown van,
that's how I earned my income. I invested in management.
If I didn't invent in management, I promise ya,
I promise ya, I wouldn't be here today.
You've got, you've got to invest in management.
What are the two roles here? This guy the Entrepreneur,
or this girl the Entrepreneur, they're thinking culture to
culture, they're thinking year to year, decade to decade,
generation to generation. They're thinking about what
happens to the company when they're dead!
The managers, they're thinking second to second,
they're thinking minute to minute, hour to hour,
week to week, month to month.
But if you've got entrepreneurial DNA
you can't do that stuff.
If you're a PA, you can't think like an Entrepreneur.
But if you're an Entrepreneur, you really need a PA.
You really need management around you,
otherwise you're shit.
(audience laughter)
You need both. It's just like, the Entrepreneur
is the leadership, but it's the management...
Now, let me explain to you how important this is,
I like using school analogies and I've worked with kids
all my life. Say I come in here and you guys all sit around
the room and we bring in fifty children. And I say,
"Alright kids, you're going to have a lot of fun here.
We're going to play some games, it's going to be really
good." And then I just leave the room.
What happens twenty three seconds later?
You lot aren't getting involved,
you're just allowed to watch. Carnage, that's what happens.
But then you put a teacher in there, a really motivating,
really good teacher, who manages the kids.
"This is the game we're going to play first of all,
then we're gonna put our toys away,
then we're gonna play this game"
And everyone's like "Yeah, alright,
yeah I'm being managed here."
Entrepreneurs forget, it's management that makes
the business. You have to invest in management.
Before (mimic sounds), before all that, if you haven't got
management, you haven't got a business.
Why are people prepared to pay millions of pounds to
buy into the McDonalds franchise idea?
They're buying a set of management criteria.
They're doing the same for KFC, for the cost of franchise,
for a franchise of magnitude, you're buying in the
management structure, a management set of rules and
instructions that will guarantee success.
So when you walk out of here today, think about,
have I got my right hand man? Or right hand girl?
And have I got enough management in my business?
Because businesses need micro managing.
Remember the thirty kids story. You put thirty kids in a
room and you don't manage them and you just say,
so the Entrepreneur, the leader comes in "Kids you're going
to have some really good fun today, see ya!"
So we've got the kids like,
"Yeah, yeah we're gonna have fun!"
Boom, boom, boom, fight, fight, fight!
Really important, E + M = S.
Hey guys, thanks for watching the video,
really hope you learned loads.
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See you really soon, bye bye.