Smart people think nobody else can do their work better than them.
Nobody So they have to control everything they're doing.
Millionaires eventually figure out that if you want to scale and build a very big business
and become a millionaire one day, you have to learn that you can't do it all by yourself,
and you need a lot of help.
So they go from being smart to being wise.
And to become wise, you learn how to delegate and leverage.
So today, we're going to talk about a word that most control freaks cannot stand.
And it's called delegation.
And I know it may be a curse word to you and I know it's not the most exciting topic you
may want to watch, but I promise you by the time we're done, you're going to fall in love
with delegation.
Because I'm going to talk about in this video 11 laws of delegation, and I'm going to talk
about what things you cannot delegate.
So maybe one day, you can get out of your own way and build a business and enjoy the
fruits of your labor.
Okay, so law #1 is to delegate up.
You've got to learn how to delegate up.
So what does delegate up mean?
When we first started the YouTube channel, I can't edit, so I delegate up.
We bring Paul.
That's delegate up.
When it came out to compliance, I'm not the best in compliance, we delegate up.
We went and got somebody.
When it comes down to all these different projects we're working on, with websites,
these apps that cost a million dollars we're designing right now, we can't do it, so we
have engineers who are experts at code, from all over the world that we delegated up to,
and they're producing products that's insane of a product they're producing for us, because
we learned how to delegate up.
The better you are at delegating up, the better products you produce, the better systems you
create, the better company you create.
Law #2.
Number two is, while you are delegating up, think about it this way.
So this certain task, put hours to it, will take eight hours if you do it, 12 hours if
somebody else does it.
So let's go based on 12 hours.
If this task is going to take 12 hours to do it, and it costs you $250, which is $25
bucks an hour to get this other person to do it, but you can do it in eight hours.
Eight hours, that's $30 per hour to you.
Are you worth more than $30 an hour?
This other person can do it.
With those 12 hours that you have, what can you do to use your 12 hours effectively to
help grow the company?
Because if you grow the company, this person has more of a steady job.
And you can pay him more money, because your brain can be in a place to say what can I
do to expand the company, and work on my business so I can grow it even to a whole different
level.
You see, there's a big difference in thinking when you learn how to delegate up and you
learn how to take this task that takes 12 hours, put it effectively in the different
area of your business to grow it.
Law #3: Just because you're best at it does mean you need to do it.
Just because you're best at it doesn't mean you need to do it.
A lot of times you're going to be the best at it.
That doesn't mean you need to do it.
I can be very, very effective in doing case management work on the complete other side
of the building with our company.
I'd be phenomenal at it.
But I'm not going to do it.
The company needs me in a complete different position than they need me sitting there doing
case management.
I am more effective for the company doing the work that I'm doing right now, because
I don't need to do that.
That's called just because I can do it better than them doesn't mean I need to be doing
it.
Law #4, force yourself NOT to do it.
Sometimes it's like an addict.
You know it's like an addict.
They can't let go of something they're addicted to.
You have no idea how much control freaks are just addicted to doing everything themselves.
No, no, no.
I'm going to do it myself.
And they fire people galore.
You know how I know that?
I fired 27 assistants in my first two years of my career 13 years ago.
You know why?
Because I didn't think any one of my assistants could do it as good as me.
None of them.
I could do better than everybody.
And I was right.
But I was not growing at the pace I wanted to grow.
The moment I delegated, I put four or five assistants around me.
We just went phoom!
We exploded, because I was finally using my time in proper areas to grow the business
that effectively grew everyone else's business.
And all those people that were assistants making a couple grand a year, right now they're
making a lot more money.
So I was beneficial to everybody if I made a decision to force myself to not have to
do all the work.
Now, let's go to the next one.
If you're going to delegate, there's one area you're going to be judged on as a person that's
going to delegate.
And here's what it is.
You will be judged on how you duplicate a certain person that you delegate a task to
that you no longer want to do.
For instance, I want to teach this person how to do front desk answering the phones.
It will take me 18 hours to teach Bob how to answer the phones.
So I'm going to role play with Bob.
I need you to do this, do this, do this, and I'm going to role play, role play, role play.
. . you got it.
. . Pretty easy?
Okay, great.
So I'm just giving the numbers.
Let's just say it takes seven hours.
So Bob is now doing the front desk.
He now has a script.
We've role played a million times.
He now knows how to do it.
I delegate that.
Negotiation.
Anybody that works here around me, we're going to work very hard on you being a very good
negotiator and learning at what point not to push, at what point to understand that
it's time for us to push.
At some point to realize this partner's abusing us.
At what point to cut a vendor and say, "we are no longer doing business with this vendor."
Why?
If you work closely with me, you're going to become a better negotiator.
So there will be many time we say, I want you to listen to this negotiation call.
Stand right here, and listen for the 30 minutes.
And they stand right here and they listen to me, and I go through it..
Boom, boom, boom.
I'm duplicating negotiators that may take a year for me to do, but a year later, I'm
going to say, you handle this, because I duplicated a negotiator.
I duplicated a negotiator that I can delegate that task to.
Which, by the way, that person's value also goes higher.
When you teach somebody else to also learn certain skills, their value goes higher, because
you injected your belief, your talent, your skill into that person.
Their value goes higher, the company's value goes higher.
This is a smart thing to do, if you learn how to duplicate other people that are doing
the tasks that you're doing.
Next, match up accordingly.
So you cannot match up somebody to do front desk if they're not very good on front desk,
and they just don't like people.
You can't match up.
That's not proper delegation.
That's not smart delegation.
You can't match up somebody to do business dev when they have a short temper.
Hey, I need you to go visit all my customers and build a relationship with them.
Okay, great.
They go out there and they piss everybody off.
They come back, why?
They had me wait 20 minutes!
It's your customers, man, you've got to wait.
What are you doing?
We just lost that account.
I don't care what it is, they made me wait!
That's a bad biz dev person.
You've got to match up accordingly, so you can't match up just anybody to delegate any
work.
You need to know, is this the perfect position for them.
Or are you asking a fish to climb a tree?
What are you doing with them?
A fish knows how to swim.
That's it.
You don't ask a fish to climb a tree like Einstein said, many years ago.
If you do, you're going to make them feel stupid, and they're not stupid.
What is their strength?
Delegate it properly in the department they're going to be able to max themselves out.
#7 Inspect until you trust.
Very simple.
You can replace the word inspect as micromanage until you trust.
So I want you to take over this task from me on a weekly basis.
Great.
It's three hours a week of work I'm doing.
Inspect, inspect, inspect, inspect, inspect.
You got it.
You're on your own.
Trust.
Law #8: Be very clear on what you're expecting.
So if I'm delegating xyz to Bobby, I got to be clear on what I'm expecting Bobby to do.
Bobby, I expect you to do boom, boom, boom.
Many times we're not clear with the direction we're giving them.
They're frustrated because they don't know how to make you happy or please you.
There's friction.
The friction is on your end, giving proper clear expectation to the other person that
you're delegating the certain responsibility to.
This has got to be clear.
Then they've got to come back and you've got to ask, "Do I make myself clear?
Does this make sense to you?
Do you have any questions?"
No, I got it.
Perfect.
Email, document, go ahead, move on, and then you hold them accountable.
You follow up with it.
#9, stop doing $10 an hour jobs.
Okay?
Stop going $10 an hour jobs yourself.
And let me explain to you what I mean by stop doing $10 an hour jobs.
I've said this in a few other videos before in the past, that I loved ironing and I loved
shining my shoes.
And at one point, even though I couldn't afford it, I stopped doing both, because I had to
increase my own value.
Now, sometimes when people say that, they say, "Well, Pat, are you saying that person's
worth $10 an hour?"
They may.
Yes.
If a person is saying yes to a $10 an hour job, guess what they're saying?
"That's what I'm worth."
If a person says yes to a $70,000 a year job, that's what they're worth.
If a person's saying yes to a $40,000 a year job, that's what they're worth.
Now by the way, so you may say, "I'm going to say no to those job offers."
Then you're not very smart because if that's what truly your value in the marketplace,
you saying no, that means you're unemployed.
So what's a wise position for you to make?
Right?
So, first of all, yes, this person is willing to choose to take this work for $10, and you
shouldn't be doing it at as an entrepreneur that wants to scale.
You need to go to the wise side, not just the smart side.
Now, watch this.
You better understand that this person is just as important as anybody else on the team.
This is a very valuable position on what you're doing.
If you delegate a responsibility to somebody and they don't know how important it is, they're
not going to do the work to the best of their abilities.
So you've got to make that very clear with somebody when you give them certain tasks
for them to do.
#10: Hire project managers.
I like hiring project managers.
Right now we're working on a certain project that's very, very big.
We don't have the time to do everything ourselves.
I have a project manager I hired from Australia who is the best of the best.
He's phenomenal at what he does.
He gives me reports.
I know exactly what's going on.
He does it, sends us emails.
We get on a Skype.
We get on a call.
I found this guy myself personally.
I recruited him.
He's exceptional.
And we're going to do business with him for many, many, many years to come.
Initially it was supposed to be a 10-hour job that we did.
I think we've done so many hours of work right now, we'll be doing business for the next
ten years together.
Hire project managers that allows you to do the bigger things to grow the business.
Last law here.
Number 11.
Be a leader.
Not a doer of all.
Let me say it again.
Be a leader, not a doer of all.
A lot of times we say things like, "He's a doer.
He does everything himself.
He's a doer.
He's a doer."
Great.
Be a doer of where you increase the value of your abilities in the company.
And everybody else is the highest possible.
Be a doer there.
Not be a doer of everything.
Nope.
Be a leader.
Lead, and do the areas that you are very good at.
Do those things.
Not do it all.
When you first start a business, you're going to do all.
When you first start a business, you're going to do compliance, you're going to do operations.
When I first.
. . I'm doing negotiations, customer service, front desk, issues, complaints.
I am doing every single thing you can be thinking about when we first started.
Every single thing you can be thinking about, I'm doing it.
But not eventually.
Eventually you become a leader.
And you need to not become the doer of all things in your business.
So now let's talk about the things you cannot delegate.
I'm going to get into a little more detail on what you cannot delegate.
First things first.
A high level skill or behavior.
Now this could be something you can delegate, but this could also be something you cannot
delegate.
Maybe this is your main skill set that you need to do this yourself, and not delegate
it.
It could be negotiation.
Maybe this is a big deal that you got to negotiate.
It could be something you're doing with the business that that is your area of expertise
when it comes down to certain numbers, tracking, something you've got to do that you know the
dots on how to come up with the formula.
You've got to be a part of it.
You can't just say, "Here you go," because then they're going to come back after forty
hours of putting into it and all the reports are wrong.
Maybe there's a part of it you need to be a part of and some you don't.
But you can pretty much determine what areas you can delegate and what areas you cannot.
It also has a lot to do with what phase of your business you're in.
Startup.
Are you in the survival phase where you have to touch everything?
Are you more formulation?
Explosion?
Are you in plateau?
What phase of your company are you in.
#2, Relationships.
Your best customers, you've got to touch your best customers.
Your best customers like to do business with you.
Your best partners, your best vendors.
And this doesn't mean every single time.
I don't deal with my customers and my vendors every single time.
But you better believe, I deal with them when it comes to important issues, I'm involved,
as the CEO, with my best customers, best vendors, best partners.
#3, Sales force loyalty.
It all has to do with what kind of a company you want to build.
A lot of times CEOs, they don't want to deal with sales.
I love dealing with sales.
I am the happiest when I'm dealing with sales.
Here's why.
You take sales out, you're out of business.
You better be good to your sales people.
Because if you don't take care of your sales people, I guarantee you, somebody else will
- like me.
I am always looking for great sales people.
I will take care of them if they come and work with us here.
We had a guy this morning on a conference call say, I can't even believe I'm part of
a company that Pat just gave me a brand spanking new Harley and he gave me a Rolex presidential
watch, all at the same day.
Same day.
This is phenomenal.
Jason said that earlier today.
This is phenomenal.
When does this happen?
We don't have a problem doing that because sales is very, very important.
And I handle a lot of sales myself, because to me they matter a lot.
So there's certain things you cannot delegate when it comes down to that.
Next, four, crisis.
You can't just say, "Hey, we have a crisis.
You handle it."
Nope, you got to be a part of it.
Hey, we're getting sued.
You got to be a part of it.
Hey, we have this.
You got to be.
. . Hey, we got a complaint.
You've got to be a part of it.
You cannot let crisis go because sometimes there may be a small complaint that you're
not willing to address because you don't think it's a big deal.
Then all of a sudden boom, boom, boom, boom, boom, it becomes this big.
Now you cannot solve it any more.
You could have solved it easily if you got involved earlier and just said, "Tell me about
the problem."
Let me make three calls.
We're good to go.
#5 - negotiations, you do.
I kind of said that earlier a little bit.
#6, big ticket items.
So a lot of times you know, depending on your company standards you may say, "any purchases
up to $10,000, needs the president's approval, and CFO's approval.
Anything above $20,000 needs my approval."
Great.
Hey, we're thinking about doing this $73,000.
No.
We're thinking about doing this at $72,000, and I have a very simple system.
If you come to me and you say, I have a purchase to make that's $50,000.
I'll always say, "Do we have three different options?"
No.
Go get two other options and then come back.
We got three different proposals here.
Okay, great.
Let me look at them.
73 but gives this, 68 but gives that, 52, however, this 52 they're newer, they don't
know what they're doing, but it's $20,000.
I'm not comfortable with this, let's go here.
Okay, great.
Awesome.
Now you move on, but the finances you touch because you've got to make a decision as a
CEO to talk with your CFO about that.
But that's purely your decision.
Last one is the heartbeat behind the brand.
The heartbeat behind the brand is the leader.
The CEO.
The entrepreneur.
The visionary.
You're the heartbeat behind the brand.
You've got to be touching the stuff that's the heartbeat behind the brand.
You know the story.
You may be the founder.
You've touched it.
You grew this thing.
You are completely vested in the heartbeat.
You got to participate in the heartbeat.
Heartbeat has to do with how people see the company, how people view the company.
How's the story being told.
The mission, the vision.
You can't just say, you guys go put the nice mission statement, vision statement, all this
stuff, and then bring it and I'll approve it.
You've got to be part of it.
That's a part of it you've got to be part of.
So those are some of the things that here in this video the title may have said why
millionaires are not as smart as you think they are.
Well, they're extremely wise.
That's why they become millionaires.
Millionaires don't become millionaires because they have no clue what they're doing.
They're extremely wise, and they realize they need a big team.
If you, eventually want to become a millionaire, you need to realize, you need to leverage,
delegate, and find good people around you that you bring up with you, and you win big,
where eventually your business, everybody that's a part of it wins as well.
With that being said, Paul, throw me just that pillow right there.
Throw me just that pillow right there.
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Take care everybody.
Thanks for watching.