In this episode Josh talks with Monte Wyatt. They discuss how more effective leaders implement a stronger level of personal discipline.
As CEO of AddingZEROS, an executive development firm and one of the top coaches in ActionCOACH Business Coaching, Monte Wyatt brings over twenty-five years of remarkable leadership, business and personal development experience to executives and their organizations.
Monte’s brand promise is threefold – Advance a career. Transform a company. Achieve incredible results.
In today’s episode you will learn:
- Are leaders made or they’re born?
- What is the definition of a successful business?
- What is the difference between leadership and management?
- What mindset is needed for organizations to succeed today?
- What are the 5 Disciplines of Exponential Growth?
Narrator: Welcome to The Sustainable Business Radio Show podcast where you’ll learn not only how to create a sustainable business but you’ll also learn the secrets of creating extraordinary value within your business and your life. In The Sustainable Business, we focus on what it’s going to take for you to take your successful business and make it economically and personally successful. Your host, Josh Patrick, is going to help us through finding great thought leaders as well as providing insights he’s learned through his 40 years of owning, running, planning and thinking about what it takes to make a successful business sustainable.
Josh: Hey, how are you today? This is Josh Patrick. You’re at the Sustainable Business. Today, we are with Monte Wyatt, and we’re going to be talking about what it takes to create a great business. Monte has put together a pretty good company himself. He’s got a consulting company. He’s got seven facilitators in it. And if you’re anything about the consulting business, building a business with even one facilitator, it’s a big deal much less seven. So we make it into how he did that. But we’re going to talk mostly about how you can create a sustainable and great business one that you love to run. So let’s bring Monte on board.
Hey, Monte, how are you today?
Monte: I’m doing wonderful, Josh. Glad to be here.
Josh: Well, thanks a lot for joining me today. So you had a great tagline you just told me. And I completely forgot what it was? Can you repeat it again, please?
Monte: You bet, “We bring clarity to how CEOs and their executive team lead and manage their organizations.”
Josh: So how do you do that?
Monte: You know a couple things. I think the world today has combined the words leadership and management incorrectly. The world says that the manager is a leader, a leader as a manager. And that really isn’t always the case. Just because you’re in a management position does not mean you are a great leader. It also does not mean that you can only be a leader, if you’re in a management position. Anyone in an organization can and should be a leader. And so I think there are some specific learning’s and traits and disciplines that leaders should have and managers should have.
Josh: Okay, so I’m going to ask you the chicken or the egg question. Are you ready for this?
Monte: You bet!
Josh: Are leaders made or they’re born?
Monte: Well, they are all born. But they have to develop, I want to use this example we have three daughters in our family and one of the things that my wife and I decided a number of years ago that we wanted them both to be a part of 4-H. I was in 4-H. My wife was in 4-H. It’s a great learning experience you give to give presentations, well, this 4-H club, decided this year that each of their members are going to go through a Toastmasters leadership class. And it’s been fun to watch them that over this eight session class, that they are taught how to speak, they’re taught how to be leaders. So every person, including children, can be taught how to be leaders. And there is a difference between a good leader and a bad leader. But people are definitely taught and grow into leadership.
Josh: So if you were to say to somebody who’s trying to figure out how to be a leader, or how to be a better leader, what would be the number one thing you would want them to start focusing on?
Monte: The number one thing that someone has to focus on is leading themselves first. Before you can lead other people, you have to lead yourself and what I mean by leading yourself is, how do you invest your time? Where do you put your energy? How disciplined are you? Do you do what you say you’re going to do? How organized are you? How focused are you? You first have to lead yourself before you can lead others.
Josh: Interesting, I think I agree with that. So after you start leading yourself, how do you start leading others, so they would actually want to follow you?
Monte: Well, leadership, I want to define it. Leadership to me is creating passion and focus. And I want to add a third word. So leadership is passion, focus and influence. And when you start to show passion around something, you have energy around it. You paint a picture of what the future is going to be. You show energy around an activity that people can get excited about. So now you start to influence others, which create focus down a path or down a direction. You don’t have to be in a title to have leadership ability. Leadership can be shown at any level by thinking, by asking questions, by showing passion around something, and others to see your viewpoint.
Josh: So you just said a word which “me” as the key word leadership, which is listening. In my experience, all great leaders are unbelievable listeners. And they’re able to listen for the message that’s not being said, you have any comment about that?
Monte: I think that’s a powerful thing. Again, no matter where you are in an organization, if you want to influence others, you have to first understand where they’re at. And understanding where someone is at, you have to ask questions, to give them the opportunity to share insights to give their viewpoint on things, their status on things so you can understand their viewpoint. And then as a leader, you can assist them or you can help them see another way to get to that end results faster. So if you don’t listen, you are bull in the China shop. You’re just going as fast as you can, but you don’t understand what’s going on around you.
Josh: Yeah, that was a problem that I had. I think another thing that’s interesting for leaders have to be thinking about anyhow, again, I’m interested in your comment on this is that most leaders I know, in fact, all leaders I know who are effective are always personally responsible. They almost never, and I would say the best ones never either blame others or justify their behavior, what’s your thought about that?
Monte: I think that is a part of leading yourself first. If I make a mistake, I need to fess up to it, I need to correct it, I need to back up and fix it. If I don’t do those things, people aren’t going to follow me. You build trust and rapport by your— I call it “your do say ratio” is what you do and what you say, are they the same? You can say all kinds of things. But if your do side doesn’t match it, you’re not going to be leading others down the path.
Josh: I, for years said that nobody ever really listens to what you say. They just watch what you do.
Josh: Yeah, I like that. You say ratio, I think I may borrow that from you. Because if you’re not doing what you’re saying, nobody’s going to believe anything comes out of your mouth. And when you ask them to do something, they’re more likely than not just to ignore you.
Monte: Absolutely. And that’s a part of leading ourselves first, if I’m not strong enough to follow through in my actions, what my word say, I’m really not leading myself well. And you know what it is how you lead yourself in your use of time and how you communicate and how you follow up. How are you managing your calendar, that’s all about self leadership?
Josh: So you mentioned something a little bit earlier. For me, it’s a hugely big deal, which is, mistakes. And good leaders, in my experience are good at managing mistakes. There’s, and even more importantly, others. Does that make sense?
Monte: Yeah. And if you have the right mindset, you actually don’t make mistakes you’re learning along the way. And I learned that I need to change I learned that I didn’t communicate clearly enough, I learned that I made the wrong decision, because I didn’t think through this well enough. Those are the things it’s a different perspective of what are you learning from it? And when we learn from it, our actions should change in the future. We can say, “Yeah, I caught that. Yep, I made a mistake.” But did you learn from it, and when we learn and grow, that’s when we gain trust and respect among our team members?
Josh: Yeah, Buckminster Fuller used to always call mistakes learning opportunities, which is one of my favorite terms. I use it all the time. One of the things that I always do with people when a mistake appears and they appear on a pretty regular basis, is I always ask, “Well, what do we learn?” And if we learn something, then the mistake was perfectly fine in a good thing to make. But if we end up not learning anything as a result of the mistake, it was a complete total waste of time and effort, at least in my opinion.
Monte: Absolutely right. That’s what life is all about? How are we learning and growing each and every day?
Josh: Yes, I would say that’s absolutely true. So I’m going to do a little pivot, because we’re in business, we have to learn how to pivot, don’t we? How would you define—this is a question that you posed in the information you provided me was, how would you define a successful business? So let me ask you that question. How do you define a successful business?
Monte: I’ve got a handful of words that are used, and I’ll even describe the words, the first word is sustainable, and you use that word as well. To me, the business should outlast everyone that’s in it. If we’re building a successful business, it should be around longer than anyone that’s in it today. So that’s the first word sustainable. The second word is predictable. A successful business should be predictable. So we know when we do these actions, we get these results. When we have a consistent marketing or consistent customer service, we know that our customers behave in this certain way. The third word is stable. A consistent business is stable, in its team and environment. I use this example, I’m sure you do this as well, you go to a nice restaurant, you find a wait staff that you really enjoy, because they enjoy talking with you, they show interest, and you go on the nights that that person works. And if that person isn’t there, you don’t go there. That’s not stability, that’s you need that stability, you need to know that no matter who it is that’s waiting on you have the stability of the people in it. The fourth word is consistency. Consistency and stability are very similar, but consistency, you should know what to expect every time you deal with a company.
So the first word is sustainability. Second word is predictability. Third word is stable, and then consistent. And the last phrase is that you have emotional connection. Now, when I say emotional connection, a great business should not only have an emotional connection with its employees, but it should have an emotional connection with its customers. And that’s how a great business will survive the long term is because people love working for you. People love buying from you, they love who you are as an organization, and what you do, and that creates an emotional connection.
Josh: So you just brought up something, you keep bringing up all these little things, which I think is very cool. And I don’t know if you are doing this on purpose, but you just mention your employees. So I have to ask you my chicken and egg questions. What’s more important, your employees or your customers?
Monte: You know I look at it this way. There are five constituents that every business has to satisfy. And two of the five are your employees and your customers. And so we have to satisfy them both. Now, which comes first, the key question, if you are doing the right things to make your employees happy, whether its benefits, it’s the environment, it’s the communication, its internal enjoyment, whatever it might be, if you are getting that feeling from your employees, they will share that with your customers. If your employees are frustrated, if your employees don’t enjoy where they’re working, they don’t get the communication that they want, they’re frustrated, whatever, they’re going to treat the customers the exact same way. So we have to treat our employee base our team in a certain level that will get them connected to us as a company. So in turn, they will treat the customers with respect and with trust.
Josh: That’s been my experience. My employees will only treat my customers as well as I treat them.
Josh: And I can give lots and lots of examples of on both sides of that table. In fact, I had one of those the other day again when I was flying through our friendly skies. So you mentioned two constituencies, but you said there’s five, what are the other three?
Monte: The five constituents that every business has to satisfy was, talk the team, we talk the customer. The next one, I’m going to say is the company as a whole. So a company is a constituent because we have to generate revenue and profit for the company so it does outlast us. So the company is a constituent by itself. The next one is the stakeholders. It could be our shareholders, our board of directors, and our owner, whatever it might be. There are stakeholders in every business. We have to satisfy them as well. The fifth constituent is the community. Every community that a business is a part of we should be thinking about how are we influencing? How are we being a part of this community, we’re part of communities by adding employees by paying taxes by volunteering, by donating, that’s helping the community be satisfied because again, a community wants to support a business that’s supporting it.
Josh: Yeah, absolutely. That makes a ton of sense to me. So what’s wrong with building a business that’s not going to last past you?
Monte: You know, when I think of a great business, so many times people are thinking of themselves so I just want to make enough money this year, I want to make enough till I can retire in three years. Well, that’s you’re owning your own job, you really don’t own a business and that’s the critical thing. A business is something that is outside of a person, if one person, I’m working out of my basement, and this is the only thing I have, I own my own job. A business is something bigger than that. A business should stand on its own and that’s the critical difference. But again, the world is thinking about, we got all these single person businesses out there. Well, they’re not really businesses. They’re people that own their own job out of their home. A business is something that creates leverage that has scalability. It’s something that is identified as it will outlast me. The great businesses in the world have been around for a long time, because they have been created to add value to the world outside of just one or two individuals.
Josh: So there are 28 million businesses in the United States, only 6 million have 80 employees at all. That means there’s 22 million solopreneur running around the country.
Josh: What do you think is the biggest impediment that keeps these 22 million people from creating a real business?
Monte: I think it’s knowledge and it’s implementing the knowledge. They work for someone else, they didn’t like the way they did it. So I’m going to do it my way. And they don’t want to have employees because, “Oh, that’s just a distraction.” That’s just a pain in the rear whatever it might be. But they’re not building something that will outlast them. They’re just looking for income. And I think that’s a critical thing is you have to choose, is this business something that’s just for cash flow? Or is it something that I can build up and make it into a true organization? And so if it is just about cash flow, that is a choice, that’s a business decision, but it’s not going to be that sustainable organization.
Josh: Yeah, absolutely. That’s for sure. So I find the number one thing that keeps people in this is it is a knowledge issue is that people who build business— or they don’t build businesses, they stay small with 0, 1, or 2 employees and won’t last past the owners because the owner really has never learned how to trust and they’re not making a conscious decision, that they want to have a real business. In my world like, right now I have just a couple of people around, and I’m 66 years old. I’m not looking to build a big business anymore. I have one with 90 employees. I did that once. But that’s a conscious decision. Most people in business who have little teeny businesses are not making conscious business decisions, at least in my opinion at all, is basically they just keep whatever happens that day is what they do.
Monte: It’s the word discipline that comes to mind. And that’s the topic of the book, Pulling Profits Out of a Hat. We recently got on Wall Street Journal bestseller list is that I’m really proud of. It talks about the five disciplines that you need to grow your business. And that’s what it takes is discipline. Discipline to train your team, discipline to put in marketing efforts, discipline to set goals for your business, discipline to have financial measures so I think it does come back to what’s the discipline that you choose to have in your business or your structure that you’ve designed?
Josh: So that makes perfectly good sense to me. What kind of mindset do we need to be successful in business today?
Monte: I think the biggest mindset that not just business leaders, but businesses and organizations in general have to have and I’m going to call it an abundance mindset. The opposite of an abundant mindset is a scarcity mindset. Scarcity says there’s never going to be enough, there’s never going to be enough money, never going to be enough customers, never going to be enough time and abundant mindset says, “There’s plenty of business out there for all of us.” An abundant mindset says, “How can we versus we can’t do that” You know, scarcity says we can’t do something abundant. Ask the question, how can we make this work? And I think that’s where a big struggle comes in the world today is, we say that too many things can’t be done so we miss the “How can we” mindset.
Josh: We also spend too much time focusing on fixing and not inventing a new way or expanding on what we know works, because it’s easy to make what we know works even better than it is to fix something that’s broken. Sometimes you just say it’s broken, throw it away. Let’s start over again.
Monte: That’s right.
Josh: At least, that’s my sort of sense on that. Monte, we are unfortunately, just about out of time. And I’m going to bet some people are listening today, you’re going to want to get in touch with you. So if they wanted to do so, how could they do that?
Monte: I’ll give a couple items. Number one is go to Amazon and order the book Pulling Profits Out of a Hat, that would be your first start. Secondly, go to addzerosnow.com. And that’s where you can learn more about how you can add zeros to your business by putting in more discipline. And if you want more insight on me, you can also go to montewyatt.com, and you can learn how I work with my clients as well.
Josh: Cool. Well, thank you so much. And I also have an offer for you. One of the things I think which is true for all private businesses. Always be worried about, do I have enough cash to make it through? And do I have enough cash to fill all the needs I have from my business and myself? So I developed this thing I call the Success Path, which is what happens to a business that starts off with just you through a sustainable organization. There are five stages along the way. I call that Cracking the Cash Flow Code, and you get a one page info graphic on it’s really easy to get, just go to www.sustainablebusiness.co/cashflow. And I’ll be glad to send you my free info graphic. So this is Josh Patrick. We’re with Monte Wyatt, you’ve been and to sustainable business. Thanks a lot for stopping by. I hope to see you back here really soon.
Narrator: You’ve been listening to The Sustainable Business podcast where we ask the question, “What would it take for your business to still be around a hundred years from now?” If you like what you’ve heard and want more information, please contact Josh Patrick at 802-846-1264 ext 2, or visit us on our website at www.askjoshpatrick.com, or you can send Josh an email at email@example.com.
Thanks for listening. We hope to see you at The Sustainable Business in the near future.