21 Differences Between Managers & Leaders

Valuetainment
5 Sept 201713:38

Summary

TLDRThe video script emphasizes the distinction between a manager and a leader, highlighting 21 key differences. It suggests that while both roles are essential, effective leadership often involves selling the 'why' behind tasks, showing rather than telling, and focusing on people over numbers. Leaders are portrayed as emotionally driven, mission-focused, and willing to take risks for exponential growth. They are decisive, give credit to their team, and know when to relax to foster a better working environment. The script challenges viewers to assess their own tendencies and consider whether they lean more towards management or leadership, and what adjustments they might need to make to achieve their future goals, ultimately aiming to help individuals enhance their business and personal growth.

Takeaways

  • πŸ“š **Learning and Leadership**: Recognizing the importance of both learning and leading in business, where learning leads to the realization of the need for leadership.
  • πŸ›‘οΈπŸˆ **Defensive and Offensive Strategies**: Understanding the balance between defensive strategies (like insurance and bonds) and offensive strategies (like stocks and mutual funds) in wealth management and business growth.
  • πŸ—£οΈ **Telling vs. Selling**: Managers tend to tell people what to do, while leaders sell the 'why' behind the action, inspiring their teams.
  • πŸ‘Ÿ **Training vs. Showing**: Managers train by explaining how to do tasks, whereas leaders demonstrate by example, showing how tasks are done.
  • ❀️ **Logic vs. Emotion**: Managers often rely on logic and risk assessment, while leaders appeal to emotion and inspire action towards a vision.
  • 🎯 **System vs. Mission**: Managers are system-driven, focusing on processes, whereas leaders are mission and vision-oriented, keeping the company's purpose at the forefront.
  • πŸ“ˆ **Tracking vs. Driving**: Managers track numbers, but leaders understand how to drive those numbers, using data to make strategic decisions.
  • ⏯️ **Avoiding vs. Addressing Conflict**: Managers may avoid conflict, while leaders address it head-on to maintain a healthy and productive environment.
  • πŸ‘₯ **People-Focused**: Leaders are more people-focused, looking at individual strengths and potential, whereas managers are more numbers-focused.
  • πŸ”— **Accountability by Force vs. Choice**: Managers enforce accountability with the threat of consequences, while leaders inspire it through choice and commitment.
  • 🌳 **Managing Work vs. Leading People**: Managers are focused on managing tasks and work, while leaders are focused on developing and inspiring people.
  • 🌟 **Oak Tree vs. Willow Tree**: Leaders understand the need to be firm (like an oak tree) and flexible (like a willow tree), adapting to different situations and people.
  • πŸ”§ **Complicating vs. Simplifying**: Managers sometimes overcomplicate tasks, whereas leaders simplify them, making them more achievable.
  • πŸ•’ **Working Expected Hours vs. Sacrificing**: Leaders often work beyond expectations, making sacrifices to gain the respect and credibility of their team.
  • πŸ† **Achievers vs. Overachievers**: Managers may be content with achieving set goals, while leaders are never satisfied and always strive for more.
  • πŸ€” **Overthinking vs. Decisiveness**: Managers may overthink decisions, while leaders are decisive, making choices and moving forward.
  • πŸ’‘ **Seeking vs. Giving Credit**: Managers might seek credit for their work, but leaders give credit to their team, fostering a collaborative environment.
  • 🚫 **Risk Aversion vs. Risk-Taking**: Managers tend to avoid risks to ensure safety and stability, while leaders embrace risks for potential bigger rewards.
  • πŸ“Š **Linear vs. Exponential Growth**: Managers often lead to linear growth, while leaders aim for exponential growth, thinking beyond immediate gains.
  • 🀝 **Authority vs. Charisma**: Managers may rely on authority to lead, but leaders often use charisma to inspire and motivate.
  • πŸŽ‰ **Knowing When to Let Loose**: Leaders understand the importance of letting loose and relaxing, which can enhance team performance and morale.
  • πŸ’΅ **Short-Term Profit vs. Long-Term Value**: Managers focus on short-term profits to satisfy stakeholders, while leaders focus on creating long-term value.
  • βš–οΈ **Control vs. Influence**: Managers attempt to control all aspects, while leaders influence others to take action and contribute to the business's growth.

Q & A

  • What is the main challenge a small business owner faces when it comes to management and leadership?

    -The main challenge is the struggle between being a manager, which involves handling tasks and processes, and being a leader, which requires vision, motivation, and selling the 'why' behind actions.

  • How do managers and leaders differ in their approach to communication?

    -Managers tend to tell people what to do, focusing on the tasks at hand, while leaders sell the 'why' behind the actions, inspiring and motivating their team.

  • What is the difference between training and showing in the context of management and leadership?

    -Managers train by explaining how to do things, while leaders show by demonstrating the process themselves, allowing team members to observe and learn.

  • How do the approaches of managers and leaders differ when it comes to logic and emotion?

    -Managers often rely on logic and data to make decisions, whereas leaders use emotion to inspire and motivate, creating a vision that resonates with the team.

  • What is the key difference between a manager's and a leader's focus on systems and missions?

    -Managers are typically driven by systems and processes, while leaders are focused on the mission and vision of the company, constantly reminding the team of the bigger picture.

  • How does a leader approach the issue of conflict in comparison to a manager?

    -Leaders are more proactive in addressing conflicts, preferring to tackle issues head-on to resolve them quickly. Managers may avoid conflict to prevent disruption.

  • What is the primary focus of managers and leaders when it comes to numbers and people?

    -Managers are more focused on numbers, tracking and analyzing data, while leaders are people-focused, looking at individual strengths and how to best utilize them.

  • How do managers enforce accountability, and how does this differ from a leader's approach?

    -Managers enforce accountability by force, with consequences such as job loss for non-compliance. Leaders inspire accountability by choice, motivating team members to take pride in their work and meet goals.

  • What is the difference between a manager's and a leader's approach to handling work and people?

    -Managers focus on managing work and ensuring tasks are completed, while leaders focus on leading people, understanding their needs, and helping them grow.

  • How do managers and leaders differ in their approach to complexity and simplicity?

    -Managers sometimes complicate tasks, making them more difficult to handle. Leaders, on the other hand, simplify tasks, breaking them down into manageable steps to streamline processes.

  • What is the key difference between a manager's and a leader's perspective on risk?

    -Managers tend to avoid risk, focusing on safety and security. Leaders are more willing to take risks, calculating the potential for reward and making informed decisions to drive growth.

  • How do managers and leaders differ in their approach to authority and charisma?

    -Managers may rely on authority to command respect, while leaders often use charisma to inspire and motivate, creating a connection that encourages team members to follow their lead.

Outlines

00:00

πŸ˜€ The Role of Managers and Leaders in Business

This paragraph discusses the challenges faced by small business owners who are constantly learning and evolving their roles. It emphasizes the importance of having both a defensive and offensive strategy in life and business. The speaker outlines the differences between managers and leaders, highlighting that managers are more focused on telling and training, while leaders sell the 'why' behind actions, show by example, and are driven by emotion and vision. The paragraph also touches on the balance needed between logic and emotion, systems versus missions, tracking versus driving outcomes, and avoiding versus addressing conflicts.

05:00

😌 The Dynamics of Accountability and People Focus

The second paragraph delves into the contrasting approaches of managers and leaders regarding accountability, work management, and personal interactions. Managers are portrayed as enforcing accountability through force, focusing on numbers and systems, while leaders inspire accountability by choice, are people-focused, and prioritize the long-term development of individuals. Leaders are also described as adaptable, sometimes behaving like an oak tree with firmness and at other times like a willow tree with flexibility. The paragraph further contrasts managers who seek credit with leaders who give credit, and managers who avoid risks with leaders who embrace them.

10:00

πŸš€ Growth Mindset and the Influence of Leadership

The final paragraph of the script focuses on the growth mindset and the influence leaders have over their teams and organizations. It contrasts the linear growth expected from managers with the exponential growth driven by leaders. The importance of having both managers and leaders in an organization is highlighted, as managers can stabilize the rapid growth initiated by leaders. The paragraph also discusses the different approaches to authority, charisma, and risk-taking between managers and leaders. It concludes with an invitation for viewers to reflect on their own tendencies and to share their thoughts on whether they lean more towards management or leadership.

Mindmap

Keywords

πŸ’‘Leadership

Leadership refers to the ability to guide, inspire, and influence others towards achieving a common goal. In the video, it is contrasted with management, emphasizing the importance of vision, emotional intelligence, and the ability to motivate and inspire a team. An example from the script is the distinction between managers who 'tell' and leaders who 'sell' their vision, indicating that leaders are more focused on inspiring action through a shared purpose.

πŸ’‘Management

Management involves the process of coordinating and organizing people and resources efficiently to achieve specific goals. The video script discusses management in the context of maintaining systems, focusing on logic, and tracking numbers. It is often associated with a more directive style, as illustrated by the phrase 'managers have a tendency of telling you things', highlighting a top-down approach to achieving objectives.

πŸ’‘Defensive Strategy

A defensive strategy in the context of the video refers to the protective measures one takes to safeguard their business or investments. It is mentioned in the beginning to draw a parallel with sports, where defense is as crucial as offense. In business, this could mean insurance, annuities, or bonds that serve as a safety net. The script uses this concept to introduce the importance of having both defensive and offensive strategies in business for stability and growth.

πŸ’‘Offensive Strategy

An offensive strategy, as described in the video, is about taking proactive measures to grow and expand, much like in sports where the offense aims to score. In business, this could involve investing in stocks, mutual funds, or ETFs. The script emphasizes the need for an offensive strategy to drive the business to the next level, as opposed to just maintaining the status quo with a defensive strategy.

πŸ’‘Emotional Intelligence

Emotional intelligence is the ability to understand and manage one's own emotions and the emotions of others. The video highlights leaders as individuals who are more in tune with emotions, using phrases like 'leaders sell on why' and 'leaders emotion' to illustrate how leaders leverage emotional intelligence to inspire and motivate their teams.

πŸ’‘Risk Management

Risk management is the process of identifying, assessing, and mitigating risks. In the video, it is discussed in the context of decision-making, where leaders are portrayed as taking calculated risks to drive growth, as opposed to managers who may be more risk-averse. An example from the script is the leader's willingness to take a '20% risk for an 80% victory', showcasing a strategic approach to risk-taking.

πŸ’‘Accountability

Accountability is the expectation of being responsible and being held responsible for one's actions. The video differentiates between 'accountability by force', which is often associated with managers, and 'accountability by choice', which is a trait of leaders. The script suggests that leaders inspire accountability through choice, creating a culture where team members are motivated to take responsibility for their tasks.

πŸ’‘Sacrifice

Sacrifice in the video refers to the willingness to forgo personal benefits for the sake of the team or organization. Leaders are described as individuals who 'always sacrifice a little bit more than everybody else', which earns them respect and credibility. The concept is used to illustrate the selflessness often required of leaders to motivate and lead by example.

πŸ’‘Conflict Resolution

Conflict resolution is the process of addressing and resolving disagreements or disputes. The video contrasts managers, who may avoid conflict, with leaders who actively 'address conflicts'. Leaders are portrayed as problem solvers who do not shy away from difficult conversations, which is crucial for maintaining a healthy and productive work environment.

πŸ’‘Vision

Vision in the context of the video is the ability to envisage and articulate a future goal or direction for the organization. Leaders are characterized by their focus on mission and vision, constantly reminding everyone about the company's mission statement and long-term objectives. The script uses the term to highlight the importance of having a clear and compelling vision to guide the actions and decisions of the team.

πŸ’‘Influence

Influence is the capacity to have an effect on the character, development, or behavior of someone or something. The video emphasizes that leaders 'influence' rather than 'control'. This is demonstrated through the script's discussion on how leaders motivate and inspire action, as opposed to managers who may attempt to control every aspect of the business process.

Highlights

The importance of having both a defensive and offensive strategy in business, with examples from sports and wealth management.

The distinction between managers and leaders, with 21 differences highlighted.

Managers tend to tell, while leaders sell the 'why' behind tasks and decisions.

Leaders demonstrate tasks and encourage observation, whereas managers focus on training through instructions.

Leaders are driven by emotion and inspiration, contrasting with the logical approach of managers.

The necessity of both systems and missions, with managers adhering to systems and leaders focusing on vision.

Leaders know how to drive numbers, while managers are adept at tracking them.

The tendency of managers to avoid conflict, in contrast to leaders who address conflicts head-on.

Leaders are people-focused, looking to maximize potential, while managers are numbers-focused.

The difference in accountability approaches: managers enforce by force, whereas leaders inspire by choice.

Leaders often display flexibility, adapting their approach to individuals' needs like an oak or willow tree.

Managers may complicate processes, while leaders simplify them for better execution.

Leaders often work beyond expectations, sacrificing for the greater good and earning respect.

The contrast between managers who aim for achievement and leaders who are never satisfied, always striving for more.

Leaders are decisive, unlike managers who may overthink and hesitate.

Leaders give credit to their team, amplifying the victory and fostering a collective sense of achievement.

The willingness of leaders to take risks, as opposed to managers who prefer to play it safe.

Leaders aim for exponential growth, while managers are comfortable with linear growth.

The combination of authority and charisma in leadership, which can lead to higher levels of success.

Leaders know when to let loose and relieve tension, enhancing team performance.

Leaders focus on long-term value creation, as opposed to managers who may prioritize short-term profits.

Leaders influence through inspiration and example, while managers rely on control.

Transcripts

play00:00

many times when you run a small business

play00:03

one of the challenges you face is you

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start reading and learning and you say

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man after all this learning I did

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management sucks I should be a leader

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because all these authors say you got to

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be a leader leader leader and I'm here

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to tell you that everything in life is

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about having a defensive strategy and an

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offensive strategy let me explain sports

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defense offense wealth management

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defensive strategy insurance annuities

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bonds gold offensive strategy stocks

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mutual funds ETFs defense office

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everything you're doing you need defense

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in office and in building your business

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to the next level on the defense side

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you have managers on the often side you

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have a leader so today I'm not gonna

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make a video bashing managers some of

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the points I make it's gonna highlight

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what managers get in their own way but

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I'm mainly gonna tell you the difference

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there's 21 differences between a manager

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and a leader so let's get right into it

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number one managers have a tendency of

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telling you things here's what I need

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you to do here's what this telling you

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here's what you got to do it tell tell

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tell tell tell leaders sell why you

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ought to do it look I want you to do

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this because if you do dot dot dot

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here's what we need to do because if we

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do we could dot dot dot they're selling

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all their points they're telling all

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their points right

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managers tell leaders sell on why we

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ought to come together why we ought to

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think bigger why we ought to come

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earlier why we ought to stay later why

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we ought to be doing this better why we

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ought to you this whole thing is about

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selling basic cell culture they'll say

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there's everything's about selling to

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them next train show managers train

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leaders show here's how you do this

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manager said leader says here come watch

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how I do it here coming to this

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appointment with me coming to this

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meeting with me watch me work on this

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watch it I call this watch how you

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handle conflict watch how you deal with

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customer complaint I want you to see how

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I'm handling this I want you to see I'm

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talking to an associate and this is out

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of a manual by the way watch this you

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need the manual you do need the manual

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but you also need the leader if there's

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only the show without it being in a

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manual then you don't have a way to

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duplicate because you do need the manual

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but managers trained leaders show

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managers logic leaders emotion let me

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explain many times in a family you'll

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say here's what I want to do in life

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maybe your mother is gonna go to the

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logical side honey it's the risk what if

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this happens I don't know I think it's

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this I think it's and maybe your father

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is gonna say yeah go do it you know it's

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justice it's complete or maybe it the

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other way around mother's gonna say yeah

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you ought to go to the demoscene oh

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let's be a little bit more careful

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because one always thinks logical one

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thing's emotional logic is here's what

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it's gonna take to get there I think

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it's gonna be very difficult man if we

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got to do all this other stuff no leader

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is gonna say man what if we pull it off

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what if we go out there and get a minute

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I'm excited about it guys we can pull

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this off let's go get this emotion logic

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by the way both are needed you need

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logic and you need emotion okay number

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four

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system versus mission vision a manager

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typically is driven based on trusting

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the system you need a system a leader is

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typically sold to constantly reminding

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everybody about what the mission

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statement of the company is and what the

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vision is here's what we're going to be

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doing here's what the mission is this is

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what we do on a daily basis

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manager but listen the system first you

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got to do this second you got to do this

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three you got to do this for you got to

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do this both are needed number five

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tracking versus driving a manager tracks

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all the numbers need it but a leader

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knows how to drive the numbers one is

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last month we did this this this this

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this this this report report report

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report report but the manager doesn't

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know what to do next with the report the

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leader comes in and says these are the

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reports us and guys here's what I think

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we can do as I look at the numbers here

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the last 90 days you did Papa Papa Papa

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here's what I forced you doing next man

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I think if we do this we can take this

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to a whole different level and what do

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you think about this what's your

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commitment what are you gonna do with

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this what are you gonna do with that

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they drive versus managers collect

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reports and give them numbers six avoid

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conflict 7 address conflicts let me

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explain you ever have somebody where

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whenever prom hem maybe it could be

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yourself a prom comes up and you wait a

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day two days three days 5 days 6 days 7

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days 10 days 2 weeks 3 weeks 4 weeks

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you don't want to bring it up because

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you're afraid of the conflict you're

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gonna face the leaders gonna say give me

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the follows column right now hey what

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are you upset with okay this lags a

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little bit managers can improve in this

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leaders want to address it right off the

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bat and get

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done right number seven numbers focused

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leaders people focused here's the

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numbers that we did they look at

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everything as a number here's the

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numbers by the way again you need that

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but the leaders gonna look at and say

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but I think this guy can do this

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this guy strength I don't think we have

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them in the right position this person I

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don't think we have them in the right

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place I think this person is going to be

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much better being in this position here

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okay maybe we ought to be able to do

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this to pull this out of them because

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it's people centric it's a number

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centric number eight its accountability

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by force accountability by choice if you

play05:03

don't do this you're fired in a

play05:05

corporate environment everybody's got to

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pull their own weight everybody there's

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a lot of these books or projects or all

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this stuff that you hear about where

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people say oh in our company we pay

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everybody seventy thousand dollars a

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year the CEO that did that that story

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was good for two months you know what

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happened year later he lost his best

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people cuz that philosophy didn't work

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he wanted to make sure everybody was

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happy so you need somebody in an office

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that accountability by four if we got to

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get this thing done this has got to get

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done but the leaders got to come in and

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say listen guys we have a choice we can

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either not hit our deadline and have to

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go against the investors and tell them

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we didn't hit this or we can get this

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done and let them know that we have a

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group here that gets things done which

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one do we want to be that's choice

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versus force a if you don't do this

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you're fired your jobs on the line okay

play05:51

little bit of both is needed in a

play05:54

football team in a sports team in a

play05:56

business if a person doesn't deliver

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they may lose their job this is not like

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a emote this is what has happened you're

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running a real business a lot of people

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are counting on at nine managing work

play06:06

versus leading people that part's

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obvious number ten oak tree willow tree

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let me explain I used to be always very

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firm with everybody always very firm

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with everybody my expectation was always

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high from everybody all the time until I

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realized that some people are dealing

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with a lot of different things in their

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life so I would have a conversation and

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dance with them a little bit and be a

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willow tree with the wind and just kind

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of listen to them and see what they're

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seeing and what's their thoughts and

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what's their language and then challenge

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them a little bit in a way that they

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would take it

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kind of hear him out and I started

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realizing this part here works very well

play06:45

long-term because that allows you to get

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the best out of your people but it kind

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of works if there's also an oak tree

play06:51

that's working with you by the way if I

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have an oak tree and a willow tree

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working too yeah that's a very very very

play06:58

good comment as you can call a good cop

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bad cop whatever you want to call it

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this makes for a great combination if

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they're working together they make a

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very good forest together in business

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number eleven sometimes managers tend to

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complicate really sometimes managers

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tend to complicate and they'll take a

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simple thing that we need to do it makes

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everybody so complicated oh my gosh this

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is so difficult we can't really pull it

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off a leader will come in and simplify

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guys all we need to do is do this do

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this make this call make this thing

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contact this person we can get it done

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that's what a leader does leaders

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simplify simplifies managers sometimes

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because they're overthinking they

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complicate certain things 12

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we got let me see what 12 is okay I've

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done what's expected of me sometimes

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it's just I've done what you expected on

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me into my job description I've met

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these requirements a leader comes and

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works on days that he doesn't need to

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because he has to sacrifice that's why

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he gains the credibility and the respect

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of being called the leader and the

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manager still has respect but never at

play08:00

the level that a leader does because a

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leader always sacrifices a little bit

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more than everybody else that's why they

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call him a leader okay number thirteen

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achiever overachievers sometimes a

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manager just wants to hit that level I

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have achieved I'm doing good we're doing

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okay a leader is rarely satisfied a

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leader you could be in a setting you're

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like oh my gosh we just had the greatest

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month why are you like this

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why are we doing that we just crushed it

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last month he or she's an overachiever

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they don't know what it is to stay at

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the status quo they always want to do

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more and take it to the next level

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that's why a few who know how to run

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with a leader who's an overachiever

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eventually have big victories themselves

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as well most people can't handle working

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with an overachiever because at times

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it's a little too much for everybody

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14 overthinking on a management side

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leaders decisive overthink you know what

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if this happens

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consequence there's too much of all

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consequences a leader says here's what

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we're doing this is what we're going

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this is what's gonna happen we're gonna

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be okay let's make the move next 15

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managers seek credit at times you know I

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came up with this sometimes I'm not

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saying all of them but sometime manners

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see credit a leader gives credit and

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eventually when the leader gives credit

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guess what happens the victory becomes

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so much bigger and and the leaders get

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big massive credit together as a team

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because they were able to lead an

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organization to get this massive victory

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so everybody gets the credit sixteen

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managers avoid risk safe don't want to

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put the money here what if this doesn't

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work what if that doesn't work a leader

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takes takes risk they don't know any

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other thing than taking risk they sit

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there in the mind they process watch a

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leader will typically come and talk to

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manager because it's logical thinking

play09:40

versus emotional and a leader would say

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hey what do you think about this party

play09:43

if I do this this this this is what

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happened with the company if we do this

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this is well you know this person could

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do this and what if we get sued and what

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if we get this and what if we get that

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how much would this cost how much would

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that come with this lawsuit car how much

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would let's do it here's what we're

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gonna be doing let's take that risk I'm

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okay with it because 20% risk here you

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know 80% is victory let's take that risk

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versus the matter is gonna see I don't

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know if we should do that or not Pat I

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don't know if we should do that or not

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Mary I don't know if we should do that

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or not

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leader takes that risk number 17 linear

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growth exponential growth managers will

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get linear growth steadily they're gonna

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get that growth you will rarely would

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managers create an exponential explosive

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growth okay you need the leader to have

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exponential growth by the way let me

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give you a contradiction here on what I

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just said on my own message to you a

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leader without a manager that's behind

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the scenes doing their part can't

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steadily maintain exponential growth

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because this is needed behind closed

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doors this is why be very careful every

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time you bash managers because behind

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closed doors great leaders always have

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phenomenal managers behind closed doors

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that know how to stabilize the

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exponential growth that takes place

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because all they do is grow the knobs we

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need a little bit more here we need a

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little bit more here boom we just got

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17,000 people that visited our website

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and place orders today nope

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the managers ready for that their leader

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is driving it exponentially 18 Authority

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charisma sometimes you need Authority

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military someone's gotta have authority

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someone's got a lead right and a

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football team someone's gotta have

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authority someone's got a lead with

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charisma hey we can do this guys look at

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some of the coaches that their charisma

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it's a different kind of a charisma they

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got you know John Wooden had charisma he

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was witty right some some of the riley

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was charismatic he knew how to get and

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he was a little bit authoritative but

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people have charisma who get other same

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man I'm just willing to buy into this

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message on what we're gonna do together

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Authority by itself typically won't go

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to the highest level authority would a

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charismatic leader they're combined

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together they can go to a higher level

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number 19 managers typically don't know

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how to let loose they're always serious

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very serious stuff we got going on here

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leaders know when it's time to let loose

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because when we play loose everyone's

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and nerves just kind of calms down and

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we play better we danced better we

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perform better we have more fun together

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so leaders sometimes know how to take

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the tension off and the pressure off of

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people next number 20 profit value short

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term long term leader creates a lot of

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value managers sometimes wants to profit

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- Priya

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- to make the investors happy make the

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shareholders happy because we got to get

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some profits right now leader saying

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we're increasing value long term 21 last

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but not least managers control leaders

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influence leaders influence others to

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take action is what they do our managers

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are trying to control everything all the

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time and if you try to control

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everything all the time you are not

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letting the Tasmanian devil have the

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life of its own to exponentially go out

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and grow your business so there's my

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challenge to you after watching this

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video I want you to go back and watch

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your video again ask yourself this

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question under 21 different points which

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one of them do you yourself lean towards

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being a manager versus being a leader

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once you're done doing that let me know

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if you think you are more of a manager

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or a leader and what your goals are in

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the future do you want to be on the

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leadership side what are some

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adjustments you need to make anyways if

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you have any other comments thoughts or

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questions comment below and by the way

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if you haven't yet subscribed to this

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channel

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on the subscribe button our goal is to

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get them get 2 million subs before the

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end of the year and we need your help

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for us to get 2 million cells take

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everybody bye-bye

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[Music]

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