Dave Ramsey – EntreLeadership – Dallas – 2014

INTRO

I recently had the privilege of attending the EntreLeadership conference in Dallas, put on by the Dave Ramsey organization. This was a wonderful 1-day course with lots of excellent “nuggets” of wisdom on topics ranging from team dynamics, leadership, family business matters, succession plans in business, raising financially savvy children, and knowing yourself (and your team, clients, and vendors).

If you have the opportunity to attend this conference, I highly recommend you make the effort! Also, I would further recommend upgrading the VIP business owner lunch and getting some additional “topic time” in a panel setting.

I took some detailed notes. Please feel free to review them below!

Best of luck to you on your continued journey of success!

Business done with EXCELLENCE matters!

65% of American economy is fueled by businesses with less than 500 employees

DR has 409 team members today

Must teach others to lead consistent with your values.                                                                                              TEACH a class, method, system, our way of doing things

For years, Dave taught a class every Tuesday night….26 week course; this became EntreLeadership          –Master Series is FULL course – 7 days….$1,000 to $10,500

Leadership Characteristics

  • Integrity
  • Passionate
  • Servant
  • Humble
  • Visionary
  • Influential
  • Disciplined
  • Charismatic

DON’T hire someone into a leadership position that does not embody these traits!!

Entrepreur Characteristics

  • Driven
  • Risk-taker
  • Fearless
  • Out of the box
  • Maverick
  • Creative
  • Decisive
  • Competitive

It is essential to have some of these folks on your team…….but NOT the whole team!!

Leader – person who rules, guise, or inspires others                                                                                        Entrepreneur – a person who organizes, operates, and assumes risk for a venture                                    EntreLeadership – the process of leading to cause a venture to grow and PROSPER.

DR – “I have learned more in the past 2 years about how stupid I am, that it mystifies me!”

 

Chris Hogan – one of Dave’s chief leaders on his team

Understanding personality style is vital for winning!

It is vital to understand:

  1. Yourself
  2. Your team
  3. Your customers/clients

The EntreLeader knows that basic people skills demand that you react to and work with the different styles DIFFERENTLY.                                                                                                                                                                             –There is not a  “cookie cutter” approach

Use the DISC profile test to yield insight into how people make decisions

–There are two versions of each personality, a MATURE version, and an IMMATURE version
–You should give feedback to your team members based on their personality type

At LAMPO, they post each person’s DISC style outside their office so the other teammates know how to deal with each other better

As leaders, every interaction with our people is an opportunity to DEPOSIT or WITHDRAW trust….make sure you DEPOSIT it!

When visiting with your team, various personalities need different focus:

D – Decisive – focus on WHEN
 I  – Interactive – focus on WHO
S – Stabilizing – focus on WHY
C – Cautious – focus on HOW

If something MATTERS to your people, then it MUST matter to you as their leader.

Using an understanding of styles and adapting PROCESSES to reflect that understanding helps the EntreLeader WIN.

You should LEAD in your family as much as you lead in your business/team.

Winning at Family Business – Dave Ramsey & Rachel Cruze

Book – God & Guinness (held as small family business for 200 years)                                                                     –Now owned by Mars Candy Company (which is owned by 3 sisters….worth over $100B)

Truet Cathey family – now has 5th generation entering the family business

Teach your kids early that WORK is a major part of SUCCESS                                                                            –Teach your kids they are NOT entitled to anything….if they are given things it is a BLESSING, not an entitlement.

Families in business that live and leave a legacy understand, train, and communicate each members ROLE.

1

 In the office, Dave is DAVE for Rachel; at home, Dave is DAD – this was a key piece of advice they were given when Rachel joined the business

It is important to NOT get your roles confused. Make sure you have the right HAT on at all times.

Family members get PAID only for the roles they are fulfilling; any other monies to be had by family members come out of PROFITS; very important for team morale

–Comp plans don’t get skewed due to family relationships

–Good to keep at least one person in between the direct-control relationship at work

Must have EXTREME amount of communication

–A family transition at your business should not be a SECRET.

Put a plan in place, set a date you’re working toward, and constantly over-communicate to your:

  1. Team
  2. Family
  3. Customers

Dave is working on a succession plan for his company; will involve both members of his family and his leadership team

Ramsey Solutions

Ramsey Personalities
–Two new brands/logos that we will start to see soon

The best and most successful family business transitions are LENGTHY and INTENTIONAL.

It is also crucial to be very intentional about specifically WHAT those family members entering the business will do, what roles they will fill, and what opportunities they will have as time goes on.

The more GRADUAL the hand-off, the better the chance of success.

You don’t’ delegate responsibility by age, but by competency.

The families that have a higher perspective do BETTER.

A higher perspective – putting the mission and generational survival of a company above personal needs – MOTIVATES and leads to greater leadership.

Viewing yourself as a guardian or caretaker of the business makes a transition much easier:

  1. To hand off the business
  2. To keep people in their roles

DR – “Eagles don’t flock, but human eagles do.”

Pain Points in Business

  1. Profit – can be fearful
  2. Process – overwhelmed
  3. Product – strong feeling
  4. People – frustrated
  5. Personal Performance – inadequate/indifferent

2

Dave has an “All Access” plan now that includes the full 26 lesson series from his EntreLeadershp Master Series

–Plugs you into mastermind group online
–Weekly e-Coaching
–Ask the coach email service
–$299 per month ($249 per month today); no contract, can cancel anytime

Lunch Program – Q&A – Panel

 

3

 

Q – How much should I “give away” in my business vs. charging services for?

  • Rachel Cruz does video blogs 2 x per week – free to all
  • Content is KING on web sites
    • Tips, blogs, helpful processes, etc.
  • Help as many people as you can; a rising tide lifts all boats
  • When in doubt, be OVERLY GENEROUS

Q – How do I know when my business is ready to franchise?

  • Must have an absolute SYSTEM in the business
  • It cannot be YOU the business is relying on
  • Must have a proven track record that is worth duplicating
Delegation boils down to TRUST; when you trust the skillset and integrity of your team members, you can delegate and leave them alone
–When there is a trust culture, the team can get much more done, quicker and cheaper

As a leader, you must constantly cast your vision…..so that the team members can fully understand and embrace the vision of the company

–Put the vision into writing and show it/communicate it constantly

What Matters Most

Business done with EXCELLENCE matters!

Dave struggles with writing….but he DOES it and markets them masterfully and profits handsomely

A championship team is no accident!

Five guiding principles for BUSINESS SUCCESS

  1. People Matter
  2. Team and a Culture of Excellence Matters
  3. Slow and Steady Matters
  4. Financial Principles Matter
  5. A Higher Calling Matters

PEOPLE MATTER

  • Customers are people; don’t treat them like revenue units.
  • Do unto other as you would have them mdo to you – Luke 6;31
  • Vendors are people; treat them like family
  • Team members are people, not units of production
  • Competitors are people; doon’t destroy them to win
  • Rabbi Daniel Lapin says God is inordinately pleased when we are obsessively, compulsively preoccupied with the needs of others
  • If you HELP enough people, you don’t have to worry about money
The conductor of a symphony depends on the power of others for the source of his power
My job is to awaking the possibiities in other people
If there is not a shine and spark in the eyes of my people, must ask the question,
“Who am I being, that my people’s(or my children’s) eyes are not shining?”

TEAM AND A CULTURE OF EXCELLENCE MATTERS

  • Great organizations create UNITY intentionally (when your organization speaks with one voice, there is nothing that can stop you; communication is KEY!!!)
    • Five enemies of UNITY
  1. Poor communication
  2. Gossip (NO place for it in y our organization; FIRE them immediately)
  3. Unresolved disagreements
  4. Lack of shared purpose
  5. Sanctioned incompetence (not caring about excellence)
  • Proper hiring creates a good team, and a good team lowers turnover
    • Thoroughbreads win races; donkeys just stand around…..you need a DONKEY DETECTOR to keep them out of your organization
  • Take TIME when filling positions
  • Pray for God to send you whho He wants to work with you
  • As part of the hiring process, include a SPOUSAL interview and a personal BUDGET from the candidate
You will not get to the end of your life and regret being overly generous to people in your life!

There are three reasons people fail

  1. Leadership failure
  2. Personal problems
  3. Incompetence
Great organizations are fanatically intentional about communication, recognition, hiring, compensation, and delegation.

SLOW AND STEADY MATTERS

–Be the tortoise, not the hare!

A BUBBLE is when an investment is no longer based on numbers but on greed or fear. Don’t do bubbles!The most successful business owners continue to read, learn, and personally grow.

FINANCIAL PRINCIPLES MATTER

Debt drastically increases RISK and magnifies mistakes

“Be diligent to know the state of your flocks.” -Proverbs 27:23
Borrowed money significantly magnifies the size of your mistakes!!
To win in business, you must plan money on paper, on purpose, before the month begins. It’s called a BUDGET.
Act your WAGE……don’t try to impress people. No need to be Big Hat No Cattle!
Being generous is the hallmark of people who lives successful lives and who operate business with soul.

A HIGHER CALLING MATTERS

 WHY you are doing business matters more than what or how!
 It’s not the money; it’s the work that matters.
 You can win at business without losing your soul.

Spineless Leader is an Oxymoron

Your business will be paralyzed by an indecisive leader.
 Indecision is caused by one thing: FEAR.

CRITICISM comes with the territory of being an EntreLeader                                                                                           19% of all males age 22-29 live with their parents; too many people have bought into the idea that success and hard work is wrong

Elements of good decision making

  • Write the deadline on a calendar as a reminder to pull the trigger
  • Gather option, options, and more options
  • Options and walking through the worst case scenario can virtually eleminate fear
  • The bigger the decision, the more information is needed
  • Train your team to bring you several possible solutions, not just PROBLEMS
  • What do your guiding values tell you about the issues?
  • Don’t let your principles change, but frequently change yoru processes
  • Is there a way to minimize the RISK by makign each part of thd decision bite-sized?
  • What are the financial implications of the decision? – DON’T EVER DO ANY DEAL THAT CAN SINK YOU IF IT GOES WRONG
  • In the multitude of counsel there is safety
  • Ask an EXPERT…someone who has done it lakely, not someone who simply has an opinion
  • Ask your spouse about all major decisions
  • If all else fails, write yourself a report describing the problem, the solution, and the timeline (for those who like to process things)
  • Making decisions sets you free
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