TheE-MythEnterprise

HowtoTurnaGreatIdeaintoaThrivingBusiness

MichaelE.Gerber

TotheDreamerswhobravelytakeaction.

Abusinesswithconscience.Thatis,Ibelieve,theonlymissionworthyofthename.Tocreateaworldinwhichpeoplearepresent,honest,open,andalive.Tocreateaworldinwhichpeoplemakeconsciousdecisionsingood

conscience.Thatiswhatshootingforthemoonisallabout.Andonecannotdoitinone’ssleep.Itrequiresallwehave.Anditrequiresnow.

—KenBlanchard,coauthorofTheOneMinuteManager®andTheOneMinuteEntrepreneur™andcofounderandChiefSpiritualOfficerofTheKenBlanchardCompanies

Contents

Epigraph

ForewordbyKenBlanchard

PrefaceHowPigandBearWentintoBusiness

Introduction

OneTheE-MythEnterpriseandthePositionofOne:ABusinessExistsOnlyasItIsPerceivedbyOthers

TwoTheE-MythEntrepreneurandtheFiveEssentialSkills

ThreeTheE-MythEnterpriseMatrix:TheFourCategoriesofPreference

FourTheFirstCategoryofPreference:TheVisualIdeal

FiveTheSecondCategoryofPreference:TheEmotionalIdeal

SixTheThirdCategoryofPreference:TheFunctionalIdeal

SevenTheFourthCategoryofPreference:TheFinancialIdeal

EightTheE-MythPerspective

NineShootingfortheMoon

ToBuildYourE-MythEnterprise

SearchableTerms

Acknowledgments

AbouttheAuthor

OtherBooksbyMichaelE.Gerber

Copyright

AboutthePublisher

FOREWORD

IlovetoreadMichaelGerber’sbooks.Hisattitudeischallenging,hisstyleisplayful,andhiscontentisinsightful.Hisearlygems—TheE-Myth,E-MythMastery,TheE-MythRevisited,andAwakeningtheEntrepreneurWithin—wereprettydarngood,tosaytheleast.ButTheE-MythEnterprisemightbehisbestbookyet.ListentowhatMichaelhastosayinhisintroduction:

TrustmewhenIsaythis:TheE-MythEnterprisesyouwillcomeintouchwithhereareasuncommonarealityaswinningtheOlympics….Companieslikethesedon’tjusthappen;Theyaretheoutcomeofpassionsintenselyapplied.Ofperseveranceimpossibletofake.Ofovercomingtherelentlessobstaclesthatarecontinuallyconspiringtomaketheimpossible,impossible.Tomaketheunfathomable,unfathomable.Tomakethedifficultmorethanjustdifficult,buthorrendouslydifficult.Ofcreatinganoriginalresultintheworld….Inshort,afreemarketsystemprovidesonewithsignificantlymoreopportunitytofailthanitdoestosucceed.

How’sthatforchallenging?Hepointsoutlaterinthebook:

Serviceisanincompletewordbecauseitsays,“Thecustomerisking.”Butasitworksoutinreallife,thecustomerisn’tkingexceptinthemindofthecustomer.Totheemployees,thecustomerisn’tking;he’softenapainintheass.Tosuppliers,thecustomerisn’tqueen;she’softenaproblemwaitingtohappen.Tothelenders,thecustomerisn’tking;he’softenadrunkhangingontoawagon,caromingintoawall.No,thecustomerisn’tkingtothem—theyare!

How’sthatforplayful?Throughoutthebook,Michaelgetstotheheartofwhatmakesbusinessestick:

Therearethreethingsthatcanbeorganized:time,space,andwork.Despitewhatmanybelieve—andwhatmosttrytodo—peoplecannotbeorganized.Onlytheworkpeopledocanbeorganized.Allattemptstoorganizepeopleinsteadoftheirworkdoexactlytheoppositeofwhatorganizationisintendedtodo.Ratherthanorder,itcreateschaos.Ratherthanease,itcreatesdis-ease.Ratherthanefficiency,itcreatesboredom.Ratherthanflexibility,itcreatesbureaucracy.Ratherthanroom,itcreatesconfinement…Whenemployedwithskill,organizationalwaysproducesasenseofgreatease.Whenemployedunwisely,organizationalwaysproducesresistance.Ihaveneverseenagreatbusinessthatdoesthingsinabusinesslikeway.

How’sthatforinsightful?IsTheE-MythEnterprisejustforpeoplethinkingaboutstartingabusiness?

No,butitsurewouldhelp.IreadthisbookonaplanefromDallastoSanDiego.Afterfinishingapage,Iwouldhandittomywife,Margie,whocofoundedourcompanywithmeandwhohas,bytheway,aPhDincommunication.Shekeptsayingassheread,“Howdowegeteveryoneinourcompanytoreadthisbook?”We’recelebratingthethirtiethanniversaryofourcompanythisyearandMargieisworriedthatwehavewhatiscalled“educationalincapacity.”Oursuccess—andwehavebeensuccessful—makesusblindtonewlearningsandwaysofthinking.Andboy,isTheE-MythEnterpriseallaboutthat.

Soreadthisbook.Shareitwithyourcolleagues.And,asMichaelGerberchallengesus,“Stopsleeping!Wakeup!”Heedthefinalthoughtsinthiswonderfulbookbythisbrilliant,passionateman,MichaelGerber,whoIamproudtocallanewfriend.

PREFACE

HOWPIGANDBEARWENTINTOBUSINESS

PigandBeardecidedtogointobusiness.“We’llmakelotsofmoney!”theythought.Pigbakedabushelofpotatoes,andBearfriedaheapofdoughnuts.Theywenttothemarketplaceearlyinthemorningtogetthebestspots.

Nobodywasaroundyet.Themorningwasclearandchilly.Bearhadanickelinhiscoat.AfterawhilehewentovertoPig’sstandtowarmupalittle.

“Howmuchforapotato?”hegrowled.“Anickelforyou.”Bearwasabouttosaythathe’djustwantedtoask,butthenhechangedhis

mind.Hefishedforthenickelinhisfur,tookthebiggeststeamingpotatoinhispaws,andcrossedtheroadbacktohisstand.

Thebusinessismoving,rejoicedPig.Butsincetherewerenomorecustomersforawhile,andhehadn’teatensincetheystartedatdawn,hecrossedovertoBear’sstandandboughthimselfablackraspberrydoughnutforanickel.

Bearwashappytohavehisfirstcustomer.Hefeltheshouldeatsomethingbeforetheystartedtoflock.Hewentovertobuyanotherbakedpotato.Themovebroughthimluck.HehadhardlyfinishedwhenPigwasoverforanotherdoughnut.

ThebusinessslackedoffagainuntilBearboughtapotato.SoonPigwasoveragain,andBearwentrightbacktohisstandwithhimtospendtheearnednickel.Pigreturnedforadoughnut,andsoontheyweregoingbackandforthuntiltheysoldeverything.

Theycountedthemoney,but:“Howstrange,Ionlyhaveanickel,”Bearsaid.“AndIhavenothingatall,”saidPig.Theycouldn’tbelieveit.“Wehavesoldallourmerchandise,”theykeptsaying,“butwehaveno

money!”

Butinvaintheycountedandrecounted:theyhadonlyanickelbetweenthemafterthewholedayofbusytrading.

—AdaptedfromTwelveIronSandalsbyVitHor?ejš

INTRODUCTION

Ifyou’vereadanyofmyE-Mythbooks,youknowmewellenoughtoanticipatewhatI’mabouttosharewithyou.Ifyouhaven’treadmyE-Mythbooks,thisbookwillcomeasasurprise.

TheE-MythEnterpriseisabookaboutthebusinessofinvention.Moreimportantly,it’sabookaboutrarepeoplewhoIhavecometothinkofastrueE-MythEntrepreneurs,peoplewhoweremovedtore-createtheirworldbyinventingabusinessunlikeanytheyhadeverseenotherthanintheirimagination.

Unlikeanybusinessyouhaveeverseen.TrustmewhenIsaythis:theE-MythEnterprisesyouwillcomeintouch

withhereareasuncommonarealityaswinningtheOlympics.Companieslikethesedon’tsimplyhappen;theyaretheproductofdeep,

deliriousimagining.Theyaretheoutcomeofpassionsintenselyapplied.Ofperseveranceimpossibletofake.Ofovercomingtherelentlessobstaclesthatarecontinuallyconspiringtomaketheimpossibleimpossible.Tomaketheunfathomableunfathomable.Tomakethedifficultmorethanjustdifficult,buthorrendouslydifficult.Ofcreatinganoriginalresultintheworld.

IthinkyougetwhatImean.Don’ttrythisathome,iswhatthewarningreadsatthebottomofthepage.Unlessyou’redeterminedtoexceed,thatis.

Toexceedwhat?isthequestion.Well,ofcourse:toexceedtheeveryday.Thenormal.Theobvious.Andifthat’sthecase,thisbooktellsyouwhatitlookslikewhenyou’re

doneandhowtothinkaboutitintheprocess.HowtoinventanE-MythEnterprise.Howtoinventacompanythatactslikeoneintenmillion.Welcometotheclub.TheE-MythClub.TheMichaelGerberClub.Theclub

ofgreatentrepreneurs.

THEFOURESSENTIALINGREDIENTS

Iwashavingaconversationwithmyfriendandagent,SteveHanselman,notthatlongago,aboutmycommitmenttocreateanewmaster’sdegree,onethatwould

longago,aboutmycommitmenttocreateanewmaster’sdegree,onethatwouldleaveanMBAandallthosewhowouldpursueitsmotheredinthedust.

IcalledthatnewdegreeanMBD,ormaster’sofbusinessdesign.Itwouldbetheonlybusinessprogramanentrepreneuroranentrepreneurial

managerwouldeverneed.Itwouldteachtheessentialskillsneededtoinventastunninglyoriginalcompany,whatIinthisbookcallanE-MythEnterprise.

Therearefouressentialingredientstobuildingsuchacompany:theyarethevisual,emotional,functional,andfinancial.Whenyoudesignacompany,youdesignitvisually,emotionally,functionally,andfinancially.Thesefouressentialcomponentscallforasystemsthinkeriftheyaretobedesignedtoworkasallgreatcompanieswork:synergistically,inanintegrated,intelligent,original,emotionallycompellingwaytodelivertheoriginalpromisetheyweredesignedtodeliver,aresultthatsurprisesthepeopleitwasintendedtosurprise,thatgluesthemtoitinwaystheyhadneverexpectedbecauseitservestheminwaystheyhadneverexpected.Anditkeepsondoingitbecauseitwasbuiltinaveryspecialway.

InthisbookIwilldiscussthebeginningsofthatMBD,atleasttothepointwhereyouwillclearlyunderstandthelogicunderlyingitandwhyitissocriticalforyoushouldyouaspiretobecomesuchaninventor,suchanE-MythEntrepreneur,asthefolksinthisbookhavebecome.

Theideaisnotthatdifficulttograsp.Acompanyisaproductofanentrepreneur’simagination.Itisavisualproduct,anemotionalproduct,afunctionalproduct,andafinancialproduct.

Althoughtheideaisnotthatdifficult,itseemsthatmostpeopleItellthattodofinditdifficultand,formany,impossibletoget.Ibelievethattobecausedbythegross,commercial,flat,unstimulating,unimaginativecontextmostofusholdontowhenrelatingtothesubjectofbusiness.

Business,tomostpeople,iswhattheirparentsdidordo.Business,tomostpeople,isthejobthey’vegottogototoday.Business,tomostpeople,iswherewework.Business,tomostpeople,iswherewewouldleastliketobeifwhatwe

reallywantedtobedoingishavingfun.Thisbooksuggestssomethingsignificantlydifferentthanthat.Businessisthemostcreativeandchallengingpursuitinwhichonecan

engage.Itisalsodownrightfun—ifdoneright.Followme.Let’sdoitright!Let’shavefun!

—MichaelGerber

CHAPTERONE

THEE-MYTHENTERPRISEANDTHEPOSITIONOFONE:ABUSINESSEXISTSONLYASITISPERCEIVEDBYOTHERS

Intoomanysituationsweautomaticallyexperiencepeopleas“them”—not“us.”Thesejungle-typehabitsofmindare

dangeroustoourspecies.

—KenKeyesJr.

Thisbookismeanttobeaprescriptionforbuildingasuccessfulbusinessinafreemarketsystem.Asyouwillfindout,itprobablyservesaswell—ifnotbetter—asapolemicagainstsuchprescriptions.

Pleaseexcusetheapparentcontradiction.Iknowthatifyou’repatient,somewhereinthemiddleresidesatruthworthdiggingfor.Buttogetthere,you’regoingtohavetodosomeofthework.You’regoingtohavetostretchwhereIstretchandletgowhereIletgo.

Inotherwords,you’regoingtohavetobewillingtoplayanalwaysfrustrating,butsometimesenlightening,game,agameIcallhowdoyouprovideananswertoaquestionthatyouknowhasnoanswer?

Inafreemarketsystem,that’sthegamecalledbusiness.Toanyonewithevenapassinginterestinthecomingsandgoingsofthefree

marketsystemintheUnitedStates,itshouldbeapparentthatthelifeofabusinesshereisaprecariousthing.Ifthebusinessisagoodidea—thatis,ifitdoesalltherightthingsintherightwayandattherighttime,andislucky—itsucceeds.

Ifit’sabadidea,itdoesn’t.Evenworse,itcouldappeartobeagoodidea,butshifts—morelike

earthquakes—intheeconomycansinkit.Wasn’tWashingtonMutualagoodidea?Wasn’tFannieMae?Wasn’tLehmanBrothers?Wasn’tAIG?

idea?Wasn’tFannieMae?Wasn’tLehmanBrothers?Wasn’tAIG?Unfortunately,thetruthisthatforthepeoplewhoinvestinotherpeople’s

businesses,forthosewhostartabusinessoftheirown,orforthosewhoworkforeitheroftheothertwo,mostbusinessesturnouttobebadideas;mostbusinessesfail.Eventheso-calledgiants.

Morefrustratingisthat,inafreemarketsystem,eventhegoodideas—thebusinessesthatsucceed—turnintothebadideasintime.

Theweatherchanges.Anewcompanymovesinacrossthestreet.Peoplestophavingbabies.Somebodycomesupwithabetteridea.Theeconomyexperiencesaso-calledcorrection.Or—andthishappens—someonecomesupwithaworseideabutimplementsitbetter.

Inshort,afreemarketsystemprovidesallofuswithsignificantlymoreopportunitytofailthantosucceed.

Whatworkedyesterdaywillmostlikelynotworktoday,andthefactthatsomethingworkstodayisinsufficientjustificationforplanningtodoitthesamewaytomorrow.

Howcanweminimizetherisk?Ifanestimatedsixoutoftencompaniesfundedbyprofessionalventure

capitalistsgounder(someestimatesrunashighas90percent*),howcananyoneelseexpecttodobetter?Shouldn’twebeabletoexpectbetterinaworldwithsomuchinformationathand,withsomuchtechnicalandtechnologicalknow-howatourdisposal,andwithsomanywell-trainedmanagersavailable?*

Foryears,clientshavebeenaskingmethoseveryquestions.Isthereacommondenominatorwecanusetotakeamoreaccuratemeasure

ofabusinessidea?Isthereapattern—atemplate—wecanusetoevaluateabusinessandits

likelihoodofachievingsignificantsuccess?Istheresomethingallgreatbusinessesdothatcanbereplicatedbyother

businesseswishingtobecomegreat?Isthereawaytoclonegreatness?Ibelievetheanswertoeachofthesequestionsisyes.Thisbookismyanswertothosethousandsofclientsandbusinesspeople

whohaveaskedmethesequestionsovertheyears,aswellastothemillionsofentrepreneurs,would-beentrepreneurs,andmanagersIhavenevermettowhomthesequestionsarejustasimportant.

Inadeceptivelythinbook,IhaveorganizedthefundamentalprinciplesthatIbelieveformthefoundationofeverylastinggreatbusinessintoatemplateormodelofgreatness,thepresenceofwhichinanybusinesswouldindicatewithagreatdegreeofcertaintywhatIcallthesuccess-pronenessofthatbusiness,and

theabsenceofwhichwouldindicatethatabusinessisnotlikelytopassthetestoftime.

Thevalueofthistemplateisthatitistimeless.Itwillworkforanyenterprise,anytime,atanyplaceintheworld.

Ittranscendsepochs,technology,industry,markets,economies,andgeography.

Itcouldhavebeenimplementedaseffectivelyinthenineteenthcenturyasitisnow.

ItcouldbeputtogoodworkjustaseffectivelyintheemergingEasternEuropeanfreemarketexperiment,asitcouldintheUnitedStatesfreemarket’sattempttorecaptureitsownlostglory.

ItcouldjustaswellbeappliedtoacornergrocerystoreastoasemiconductorplantinChandler,Arizona,oraniPodfactoryinChina.

Thereasonitissotimelessandsotransferableisbecauseitisfoundedupontheonesacrosanctrequirementuponwhichtheexistenceofeverybusinessinafreemarketsystemalwayshasdepended,andalwayswilldepend.

Thatis,tosucceed,everybusinessinafreemarketsystemmustlearnhowtosatisfy,betterthanitscompetitors,theessentialneeds,unconsciousexpectations,andperceivedpreferencesofthefourmostimportantgroupsofpeopleinitsuniverse:(1)thepeoplewhoworkforit;(2)thepeoplewhobuyfromit;(3)thepeoplewhoselltoit;and(4)thepeoplewholendtoit:itsemployees,customers,suppliers,andfinancialinstitutions.

Itisthecombinedjudgmentofallthesepeople,thesefourprimaryinfluencers,uponwhichtheultimatesuccessorfailure—yes,thelifeordeath—ofeverybusinessenterpriseultimatelydepends.

Whichbringsustoourfirstruleofthumb.Andthatis,inafreemarketsystem…

BusinessesExistOnlyBecausePeopleWantThemTo.

Ihopethatstatementdoesn’tcomeasabigsurprisetoyou.Itsurprisesmethatmostbusinessesseemtooperateasthoughexactlythe

oppositeweretrue.Asthoughpeopleexistbecauseofbusinesses.AsthoughGodcreatedbusinessesfirst,andonlywhenthebusinesseswere

seennottoworkdidHecreatepeopletogotoworkinthem,tobuyfromthem,toselltothem,andtolendtothem.

Iknowthat’sadumbthingtosay—Iknowit.

Butit’sanevendumberthingtodo.Yetformanybusinessesit’sstandardoperatingprocedure.

Whichbringsustooursecondruleofthumb.Andthatis,inafreemarketsystem…

PeopleAreRegardedasaProblemtoMostBusinesses.

Yes,tomostbusinessesinafreemarketsystem,peopleareregardedasaproblem—notonlythepeoplewhoworkinthebusiness,butthepeoplewhoselltothebusiness,thepeoplewhobuyfromthebusiness,andthepeoplewholendtothebusiness.Allpeopleareregardedasaproblem.Andthey’reaproblembecausethey’resounmanageable.Whenpeoplearemanageable,they’renotaproblemanymore.They’reinvisible.

That’swhatmostbusinessesIhaveseenwouldlikepeopletobe.Invisible.Notaproblem.Notneedingattention.Pliable.Easy.

That’swhytherearesystemsintheworldotherthanthefreemarketsystem.Othersystemswerecreatedtoeliminatetheproblemofpeople.Inother

systems,peoplearen’taproblembecauseitdoesn’tmatterwhattheywant.Inafreemarketsystem,youcan’tgetawaywiththatmind-setforverylong,

andthat’swhatdriveseverybodynutstryingtorunabusinessinthissystem.Inafreemarketsystem,wehavetocometogripswiththefactthatthereare

allthesepeople—needing,needing,needing.Unfortunately,inafreemarketsystem,allofthemareneedingthesame

damnthing—MORE!

Moreofwhat?Moreofeverything!Butdon’tpeopleknowthatthere’sonlysomuchabusinesscangive?Whyaren’ttheyunderstanding,likeus?Likewho?

Likebusinesspeople.Likethepeoplewhorunthebusiness.Likethepeoplehereinthebusinessatthetop.Likethepeoplewhoownthebusiness.Likethepeoplewhomanagethebusiness.Likethepeoplewhowouldlikeotherpeopletobemorereasonable.Likethepeopleverymuchlikeus,whowant…what?

Likethepeopleverymuchlikeus,whowant…what?

WhowantMORE.Whowantmoreofwhat?Ofeverything!Butabusinesscanonlygivesomuch!Whosaid?

Inafreemarketsystem,businessesareinventedbypeopleforaveryspecialreason.

Butdespitewhatmostofusbelieve,businessesarenotinventedonlybythosepeoplewhogointobusiness—theso-calledentrepreneursamongus.

Inafreemarketsystem,businessesareinventedbyallofus—byeachandeveryoneofus.Thereasonweinventbusinessesinafreemarketsystem,likeoursintheUnitedStates,istodoonething—andonlyonething:tocreateMORE.BusinessesinafreemarketsystemaretheinstrumentsthroughwhichpeoplegetMORE.

Inallothersystems,businessesaretheinstrumentthroughwhichmostpeoplehopefullygetenough(butrarelydo),whilesomepeople—someveryfewpeople—gettheMOREthateveryoneelseisn’tgetting.

Butinthefreemarketsystem,everyoneissupposedtogetMORE.Theproblemwiththefreemarketsystemisthatwheneveryonedoesn’tget

theMOREthattheywant,then“shithappens”(asthecrudebumperstickerstates).

Andthat’sthepartofthefreemarketsystemcalledbusiness,whichveryfewpeopleinbusinessseemtofullyunderstand.

Abusinessinthefreemarketsystemisonlyjustifiableinthemindsofpeople—isonlytoleratedinthemindsofpeople,isonlypermittedtoexistinthemindsofpeople—ifthebusinesslearnshowtogivethemMORE.

Abusinessisintendedtobeaperpetualmotionmachine,theonlypurposeofwhichistofindwaystogivepeopleMORE.

AbusinessisamechanismdesignedtoproduceMOREforthecontinuallyrisingexpectationsofpeopleinafreemarketsystem.

Andinafreemarketsystem,theminuteabusinessforgetsthesethings,theminuteabusinessstopsprovidingMORE,theminuteabusinessbeginstoignoreitssolepurposeforbeinginafreemarketsystem—itsraisond’être—itceasesplayingthegamecalledbusiness.

Itbeginstoplaythegamecalledgood-bye.Whichbringsustoourthirdruleofthumb.Andthatis,inafreemarketsystem…

ServiceIsanIncompleteWord.

Ifeveryoneunderstoodthat,inafreemarketsystemsuchaswehaveintheUnitedStates,thegamecalledbusinessisallaboutcreatingMOREforeveryone,wewouldimmediatelyunderstandwhyserviceisanincompleteword:itdoesn’tincludeenough.

Itdoesn’tincludetheemployees.Itdoesn’tincludethesuppliers.Itdoesn’tincludethelenders.Itonlyincludesthecustomers.

Serviceisanincompletewordbecauseitsays,“Thecustomerisking!”Butasitworksoutinreallife,thecustomerisn’tkingexceptinthemindof

thecustomer.

Totheemployees,thecustomerisn’tking;he’softenapainintheass.Tothesuppliers,thecustomerisn’tqueen;she’softenaproblemwaiting

tohappen.Tothelenders,thecustomerisn’tking;he’softenadrunkhangingonto

awagoncareeningintoawall.

No,thecustomerisn’tkingtothem—theyare!“Ifthecustomerisking,”theyallaskprivately,deepinthehiddenrecesses

oftheirlonginghearts,“whataboutme?”That’swhateverybodyelseisaskingtoo:“Whataboutme?”That’swhathappenswhenwedon’tunderstandthegameofbusinessasit’s

meanttobeplayedinafreemarketsystem.Peoplestartaskingthemostobviousquestions.

Itshouldbeobviousthat,byitself,astrongfocusonthecustomerisinsufficienttocreateasuccessfulbusiness.Therecanbenosuchthingaseffectivecustomerserviceinacompanywheretheemployeesaredisenchanted,wheretheownersaren’tmakingadecentprofit,wherethesuppliersaren’tgettingpaidontime.

Inshort,astrongfocusoncustomerservicenotonlyisinsufficienttoproducelastingresultsinacompany,but,initself,makeslastingresultsimpossibletoachieve.

Whichbringsustoourfourthruleofthumb.

Whichbringsustoourfourthruleofthumb.Andthatis,inafreemarketsystem…

ThereAren’tAnyGoodAnswersforLong.

If,aswe’vealreadyagreed,thepurposeofabusinessistoserveasaninstrumentthroughwhichpeopleinafreemarketsystemgetwhattheywant—andwhattheyalwayswantisMORE—thenitissafetoassumethatanybusinessthatcomesupwithMOREisservingitspurposewell,andthereforesurvives.AnybusinessthatfailstocomeupwithMOREisnotservingitspurposeatall,andthereforedies.

Thisleadsustotheunavoidableconclusionthateverytimeabusinesscomesupwithananswer,thatanswerbearswithinittheseedsofitsowndemise.

Everyanswerinasuccessfulbusinessisonlyatemporarysolutionreachedonthenever-endingpathtowardthesearchforMORE.

WhichmeansthatforbusinessesoperatingintheLandofMORE,therearen’tanyanswers,onlyquestions.Andthequestionsallleadinthesamedirection—thedirectionthateverysensible,aware,responsive,dynamicchiefexecutiveofficerknowsastheonlywaytoMORE.

Thisisthewayeverysuccessfulbusinessoperatinginafreemarketsystemfromtimeimmemorialhasfollowed:thesearchfortheineffable,theindefinable,theunknowable,theindisputably,irrefutably,pragmatically,unavoidablyaggravatingHolyGrailofMORE.

Theonlyjustificationnecessaryis“Ifwedon’t,theywill.Andiftheyfinditfirst,ourassisgrass.”

Whichleadsustoourfifthruleofthumb.Andthatis,inafreemarketsystem…

YouAreEithertheLawnMowerortheLawn.

Whichiswherewebeganthislittlemoralistictale—thatinafreemarketsystem,businessisaprecariousthing;yourverysurvivalisatstake.

AndintheLandofMORE,aswe’vealreadylearned,ifyoudon’tsurvive,it’sbecauseyoudidn’tdeserveto.

Youweren’tpayingattention.SomebodyopenedthegateandrolledintheJohnDeerewhileyou

weren’tlooking.

weren’tlooking.Suddenly,yourrolewasdefinedforyou:yourasswasgrass.

Thisisthesamewaytheroleisdefinedformostbusinesses,everysingledayoftheyear:becausetheyaren’tplayingthegamecalledbusiness;they’replayingthegamecalledgood-bye.

What’ssadisthattheyrefusetoacceptthatthere’sadifferencebetweenthetwogames.

Yes,it’ssadandit’struethatmostbusinesses,largeandsmall,arelivingbyrulesofthumbthataren’trulesatall,butthecoveroftheboxthey’velaiddownin.

Theyhavestoppedaskingquestionsandhavecomeupwithanunsuitable(thatis,self-serving)answer.

Aclosefriendofminewroteabookaboutthemeaningofmoney.Heobservedthatfewofusreallyunderstandwhatmoneyis;wesimplyuseit.Hefeelsstronglythatwe’repayingabigpriceforourignorance.

Ifeelthesamewayaboutbusiness.Likemoney,businesstoucheseachandeveryoneofusateveryturn—our

food,ourclothes,ourentertainment,ourrecreation,ourhealth—ourverylife.Everychoicewemakeisimpactedbybusinessinsomeform,creatingsomeserviceorproductuponwhichwedepend,orhavegrowntodepend,ifnotforourverysurvival,atleastforthesurvivalofthelifestylewehavegrowntoenjoy.

Everyday,allaroundus,businessesarebeingborn,living,struggling,anddying.Eachofthem,likeeachofus,isauniquebeingwithauniqueidentityandauniqueplaceintheworld.Allofthecharacteristicsfoundineachofus—activeorpassive,creativeordull,passionateorstingy,growingorwithdrawn—canbefoundinabusiness.

Yet,justaswithmoney,fewofusunderstandwhatthisthingcalledbusinessreallyis.Wegotoworkinthem,buyfromthem,andhaveopinionsaboutthem.Butwedon’tunderstandthem.

Tomostpeople,businessiswhatgoesonarounduswhilewegetonwithourlives,somethingbeingdone“outthere”—atmostacommercialenterprise,aplacetomakemoney,aplacetogotowork,aplacetobuythings,oraplacethatmakesthingswebuy.

Fewpeopleseemtounderstandthatbusinessismuchmorethantheseindividualfactors.

Inafreemarketsystem,businessisn’twhatgoesonarounduswhilewegetonwithourlives.Businessisourlives.

Businessiswhatwedo,allwedo,whoweare.Inafreemarketsystem,businessistheorganizedexpressionofourgrowing

self-interestmanifestingitselfthebestwayitknowshow.Businessisalivingthing.Lookatourbusinesses,andyou’llknowwhoweare.Inafreemarketsystem,everyoneistouchedbytheallureofbusiness.You

can’tgetawayfromit.

Writerstalkaboutthebusinessofwritingbooks.Artiststalkaboutthebusinessofcreatingart.Intellectualstalkaboutthebusinessofcommunicatingideas.Spiritualiststalkaboutthebusinessofraisingourspiritualawareness.Meditatorstalkaboutthebusinessofteachingushowtosit.Chiropractorstalkaboutthebusinessofteachingushowtostand.Preachersareinthereligionbusiness.Musiciansareinthemusicbusiness.Pediatriciansareinthebabybusiness.Cardiologistsareintheheartbusiness.

Wehavetakentheworldapartandputitbacktogetheragainasabusiness.

Thebusinessofgovernment.Thebusinessofeducation.Thebusinessofhealth.Thebusinessofart.

Welivetheillusionthatweunderstandwhatbusinessis,wheninfactwedon’t.

Despitewhatmostpeoplethink,businessisn’tdoingorcreatingsomethingtobesold.

Businessisalivingthingthatfeedsandgrowsontheexpectations,perceptions,needs,fears,andgreedofthepeoplewithwhomitcomesintocontact.

Businessisaproductofeverythingwebelievetobetrue,needtobetrue,wanttobetrue.

Ourbusinessesareus,andweareourbusinesses.Whichbringsustothepointathand:theE-MythEnterpriseandthePosition

ofOne.

ofOne.Thatis,abusiness,anybusiness,cansucceedonlytothedegreethatitgives

eachandeveryoneofitsfourprimaryinfluencersMOREthantheycanexpectfromanyoneofitscompetitors.

Thewayinwhichabusinessaccomplishesthisobjectiveiswhatwewouldcallagoodidea.

Anideathatwillattractcustomerstoit.Anideathatwillattractemployeestoit.Anideathatwillattractsupplierstoit.Anideathatwillattractlenderstoit.

Itisanideathatattracts,withthegreatestofforce,theinterestandattentionofthefourprimaryinfluencers,andactswiththesameforcewithwhichitattracts.

Theforceofanyideaoriginatesintheessentialneeds,perceivedpreferences,andunconsciousexpectationsofthepeopleitisintendedtoserve;anideahasnoforceofitsown.

Thoughtofinthatway,agoodideaforabusinessisonethatservesthemostpeoplebest.Abadideaforabusinessisonethatservesthemostpeopleleast.

ThePositionofOneisthatlocusofenergy—thatfusionofattention—createdwhenagoodideaattractstoitselftheself-interestsofcustomers,employees,suppliers,andlendersalikewithanequal,active,intenselyinterestedforce,whichthenmovesoutintotheworldtoattractmoreforce,which,inturn,movesoutintotheworldtoattractevenmoreforce,thusgrowingandexpandingandexplodingwithapowerunrivaledbyitscompetitors.

Likeastar.Likethesun.Liketheeyeofastorm.That’sthepowerofthePositionofOne.

DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS

(ListentothePodcastversionatMichaelEGerber.com)

Mybriefsummarieswillendeverychapterandincludetheessentialideasthatyouneedtopostonyourwall,burnintoyourbrain,thinkaboutduringyourcommute,andremembereveryday—asyoubuildyourE-MythEnterprise.GotoMichaelEGerber.comformyPodcast—andnewinformationthatwillimpactyourenterpriseinevengreaterways.

Businessesexistonlybecausepeoplewantthemto.Wewantbusinessestoserveourneeds.Fulfillourdesires.Makeourlivesbetter.More,more,more!Whentheyfailtodothat—ornolongersucceedastheyoncedid—dowestillwantthemtoexist?Howwillyourcustomersfeelaboutyourbusinessnextyear?Infiveyears?Intenyears?Peopleareregardedasaproblemtomostbusinesses.Theshake-upsinthefinancialsectorclearlyillustratethefailureofleaders,systems,andconsumerprotections.Weallrecognizethatwewant—andneed—banksandinvestmentfirms.Butwewantthemtofunctionproperly.Tokeepourmoneysafe.Toremainsolvent.Tobemanagedandstaffedbypeoplewhoplaceourinterestsfirst.E-MythEnterprisesreduceandresolveproblems,refinethe“peopleselectionprocess.”Serviceisanincompleteword.Thecustomercannotbekingifmanagementisking.Thecustomercannotbekingifemployeesareking.InanE-MythEnterprise,owners,managers,employees,suppliers,andlendersmustcomeintoalignmentandcrownthecustomer.Servicethenbecomesacompleteword.Therearen’tanygoodanswersforlong.CustomerswantMore,More,More.Obviously,youcan’tofferLess,Less,Less.ChangingneedsandwantsMUSTchangethewayyoudobusiness.TheE-MythEnterpriseandthePositionofOne.AnybusinesscansucceedonlyifitgivesitsfourprimaryinfluencersMOREthantheycanexpectfromacompetitor.Thisisaccomplishedthroughagoodideathatwillattractcustomers,employees,

suppliers,andlenderstoit.

CHAPTERTWO

THEE-MYTHENTREPRENEURANDTHEFIVEESSENTIALSKILLS

Therealunknownisanemotionalunknown….Weawakentodarkness.

—JacobNeedleman

Ifagoodideaforabusinessisonethatservesthemostpeoplebest,thenweintheUnitedStateshavesomesoulsearchingtodo,becausethere’ssomethingmissinginmostofourbusinesses.Andthatsomethingismeaning.

Forourfailuretounderstandthetruerolebusinesshascometoplayinourlives,forourfailuretotrulylistentothepeoplewecomeintocontactwith,forourbiastowardservingourownspecialinterests,forourraw,insatiabledrivetogetthematerialMOREweallseemtobesayingweneed,itcan’tbedeniedthattoomanyofourbusinesseshavebecomekillingfieldsofthespirit.They,likeus,havemissedthedeepermessage.

Totrulysoar—especiallyiftheeconomyischallenging—abusinessmustmeanmorethanjustmoney,morethanjust“things,”morethanwhat’seasy,morethancareers,inventory,productionstatistics,ROI,automobiles,lipgloss,remodeledkitchens,managementbyobjectives,pensions,profitsharing,“goldenparachutes,”andcurrenttrendsandfashions.

Toachievesomemeasureofgreatness,abusinessmustsomehowriseabovetheone-dimensionalsymbolsandemptyritualsofoureverydayflat-worldexistence.

Totrulyattractthegreatestamountofforceandthegreatestattention—tofullyseizeitspotentialpower—theideabehindabusinessmuststrikemuchdeeper.

Itmuststrikeourimagination.

Itmuststrikeourimagination.Itmusttouchastrong,resonant,andresilientchordintheheartsofall

thosepeopleitisintendedtoserve.Itmustuseitsenergyinaprofound,intelligent,andcompassionateway.Itmustreachbeyondthetrivial,thecourse,theordinary,themundane.Itmustgiveusmorelife.Itmustbecomeapresenceimpossibletoignore.ItmustbecomeaplaceinwhichthemosttransientMORE,themost

predictableMORE,themostsuperficialMORE,themostimmediateMORE,themosttrivialMOREisneverenough.

Itmustbecomeheroicineverythingitdoes.Itmusttouchthedyingpartofeachandeveryoneofusandraiseusto

somehigherplace.

Fiveessentialskillsareneededattheoutsettocreateagreatbusiness.Isayattheoutset,fortheseskillsmustbeinplaceiftheideaforthebusinessistopossessthesize,thescale,themagnitude,theecstaticquality—thepower—neededtoentertherace.

Tosomedegree,everygreatbusinesspossessestheseskills.Iwouldgosofarastosaythatabusinesswithoutthemisdead.

Thefirstessentialskill—themostfundamentalofall—isconcentration.

Concentrationisthefoundationuponwhichallrightactionintheworlddepends.

Withoutconcentration,abusinesswillhavenopresence,noinnerforce,nomagneticcentertowhichpeople,uponwhomitdependsforitslife,energy,andforce,willbeattracted.Withoutconcentration,thereisnoabilitytolisten,torespond,tobeavailable.

Concentrationisnotonlysomethingagreatbusinessmustdo,itisalsotheresultofsuchdoing.Asabusinessconcentratesitsattention,italsobecomesconcentrated—theconvergentpointtowhichenergyisdrawn.

Thet’aichimasterT’anMeng-hsien,inhisSongofCentralEquilibrium,says:

Wearecentered,stableandstillasamountain

Ourch’isinkstothetan-t’ienandweareasifsuspendedfromabove.Ourspiritisconcentratedwithinandouroutwardmannerperfectlycomposed.Receivingandissuingenergyareboththeworkofaninstant.

Saidanotherway,agreatbusinessownsaplaceintheworld.

Itstandssquarelyinthatplacebutisabletomoveinaninstant.Itsenergy,itsch’i,flowswithoutobstruction.Itisloose,flexible,yetassolidasamountain.Itsfacelookswithinandwithoutintheverysamemoment.Itspoweriscontinuouslyinmotionyet,atthesametime,infinitelystill.Allaredrawntoitastoavision.Itdoesimportantthings.

Intoday’sworld,IthinkofApple.Whilethiscompanyownsonlyasmallshareofthepersonalcomputermarket(themostrecentnumberIheardwas8percent),itstandsinaplaceintheworldthatisindisputable.ItownstheMP3domain,aswellasthemusicdownloadrealm.Otherswantthatmarket.MicrosoftwantstotorpedoApplewiththeZune.ButtheenergyofSteveJobsandhisteamisplantedsolidlyonavisiontodoimportantthings.

Bythetimeyoureadthis,Applecouldbegone.Italmostdisappearedin1993,whenJobswasnotapartofthepicture.ButmyguessisthatApple’senergywillcontinuetoflowwithoutobstruction.ItwillbethecompanyofMORE,offeringmoreinitsiPods,itsiPhones,anditscomputers,allofwhichcontinuetobecuttingedge.That’sthefocus;that’swhereconcentrationmeetsMORE.

Thesecondessentialskillisdiscrimination,theabilitytochooseuponwhat,where,andwhomourattention,ourabilitytoconcentrate,isdirected.

Ifconcentrationprovidesuswiththeattentionandenergyweneed,discriminationprovidesuswiththeintention,thewilltoselectthemostimportantworktodo.

Itisthroughdiscriminationthatabusinessdevelopsstandards,bothstrategically,intheformofamission,andtactically,intheformofbehavior.

Itisthroughthedevelopmentofstandardsthatabusinessdevelopsdiscipline.

Itisthroughthedevelopmentofdisciplinethatabusinessdevelopspatience.

Itisthroughthedevelopmentofpatiencethatabusinessdevelopsvision.

Itisthroughthedevelopmentofvisionthatabusinessdevelopsinsight.Itisthroughthedevelopmentofinsightthatabusinessdevelops

conviction.Itisthroughthedevelopmentofconvictionthatabusinessdevelops

awareness.Itisthroughthedevelopmentofawarenessthatabusinessdevelops

empathy.Itisthroughthedevelopmentofempathythatabusinessdevelops

relationships.Itisthroughthedevelopmentofrelationshipsthatabusinessdevelops

morelife.

Again,Appleprovidesastunningexampleofthisthreadleadingfromdiscriminationtoconviction,toawareness,toempathy,torelationships,tolife.Thisiswhatexplainsthephenomenonof“MacEvangelists,”thosedie-hardloyalistswhowouldstandinlineforhours,ifnotdays,tobuythelatestmodeliPhone,evenifitweremadeoutofrecycledcardboard.Appleunderstandsthatdiscrimination,theabilitytochooseuponwhat,where,andwhomitsattention,itsabilitytoconcentrate,isdirected,ultimatelyleadstorelationships—andthatdevelopsmorelife.

Thethirdessentialskillisorganization,theabilitytoturnchaosintoorder.

Ifconcentrationprovidestheenergyandattentionneededforrightactiontotakeplace,anddiscriminationprovidestheintentionandstandardsneededtoknowwhatactionneedstobetaken,thenorganizationprovidestheroomforrightactiontotakeplace.

Therearethreethingsthatcanbesoorganized:time,space,andwork.

(Despitewhatmanybelieve—andwhatmosttrytodo—peoplecannotbeorganized.Onlytheworkpeopledocanbeorganized.Allattemptstoorganizepeopleinsteadoftheirworkcreateexactlytheoppositeofwhatorganizationisintendedtodo.Ratherthanorder,itcreateschaos.Ratherthanease,itcreatesdis-ease.Ratherthanefficiency,itcreatesboredom.Ratherthanflexibility,itcreatesbureaucracy.Ratherthanroom,itcreatesconfinement.)

Theorganizationoftimepreventstheoverutilizationofenergytoachieveone’sobjectives;justenoughtime—andnomore—withinwhichtherightactioncanbeefficientlyperformed.

Theorganizationofspaceproducestherighttoolsintherightplaceintherightquantitytosupporttherightactionwithaneconomyofeffort.

Theorganizationofworkidentifiesthenaturalwaytotakeaction,therelationshipsbetweenfunctions,andthecoordinationbetweenthetwo.

Whenemployedwithskill,organizationalwaysproducesasenseofgreatease.

Whenemployedunwisely,organizationalwaysproducesresistance.IbelievethatStarbucksisastunning—yetsimple—exampleoforganization

atwork.ThetypicalStarbucks,especiallyinplacessuchasdowntownManhattan,canhave,attimes,longlinesthatstretchoutthedoorsandontothesidewalks.Thiscouldeasilytranslateintochaos.Butitusuallydoesn’t.Timeisorganizedbecausesomeoneisapproachingcustomersattheendofthelineand“walky-talky-ing”theordertothecashier,whorelaysittothebarista.Thespaceandthetoolsareorganizedtoenabletheefficientandtimelydeliveryofdrinks.Andeverythingiscoordinatedbeautifully,fromtheordertaker,tothecashier,tothebarista,tothedeliveryofthedrink.Ofcourse,noteveryStarbucksexperienceisperfect,butit’sclearthattheorganizationoftime,space,andworkisaseriousgoal.

Thefourthessentialskill,innovation,turnsorderintorightaction.

Innovationissometimescalledthe“BestWay”skill;itisalwaysinsearchofperfection.

Whileorganizationisinterestedinefficiency,innovationisconcernedwitheffectiveness—faster,cheaper,smoother,softer.

Innovationiswhatchildrendoallthetime.Likechildren,itisplayful,bright,light,andjoyful.

bright,light,andjoyful.Alsolikechildren,innovationisalmostalwaysirresponsible.Lefttoitsown

devices,itwillalmostalwaysgetitselfintrouble.Itisalwaysimaginingnewpossibilitiesandactingonsuchimagining.Itiswillingtotryanythingonce.Thatiswhywithoutconcentration,discrimination,andorganization,

innovationcouldverywellsinktheship.Ontheotherhand,withoutinnovation,theshipwouldn’tbeverymuchfun.Again,IturntotheexampleofApple.Imaginewalkingintoaretail

technologystorewithyouroff-springintow,andwhileyou’redevisingwaystospendpossiblythousandsofdollarsongadgets,yourkidgetstositdownonkid-sizedchairsinfrontofakid-sizedtablefilledwithkid-friendlycomputerstoplaykid-typegames—whileyoushopforadult-friendlytoys.That’sApple.That’sinnovation.Hands-oninnovation.Notcheaper,butcertainlysmootherandsofter.

Thefifthessentialskilliscommunication.

Itistheskillthroughwhichresultsareproducedintheworld.Shamefully,they’renotalwaysthegood,desirableresultsforwhichwehopeandpray.Sometimesthey’retheopposite.

Butcommunicationtouchesandistouched,reachesoutandisreachedfor,movesandismovedupon,actsandisactedupon.

Communicationisthechannelthroughwhichlifeisconveyed,throughwhichtheenergyoftheideaistransmitted,throughwhichthemindandthebodyandthespiritaremergedandprojectedintoaforceforrightaction.

Itisthemediumthroughwhichattractionsareformed,thendeepen.Itisthebondweeachhavewiththeworld.Allofthegreatleadersinhistoryhavebeengreatcommunicators.Abraham

Lincoln.WinstonChurchill.JohnF.Kennedy.MartinLutherKing,Jr.RonaldReagan.Someyoumayadmire,someyoumaynot.Andthenthere’sAdolfHitler.Notaforceforrightaction.Certainlynotonanyone’slistofmostadmired,butaneffectivecommunicator,nonetheless.He’stheoppositethatImentioned.

DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS

(ListentothePodcastversionatMichaelEGerber.com)TheE-MythEnterpriseiscreatedandledbyanindividualwhopossessesfiveessentialskills.Havingonlytwo,three,orevenfouroftheseskillswillleadtocertaindisaster.

Thefirstessentialskill—themostfundamentalofall—isconcentration.Withoutconcentration,abusinesswillbeordinaryineveryrespect,becauseitwillhavenopresence,noinnerforce,nowaytoattractthepeopleuponwhomitdependsforitslife,energy,andforce—employees,customers,suppliers,andlenders.Withoutconcentration,thereisnoabilitytolisten,torespond,tobeavailabletothefourprimaryinfluencers.Thesecondessentialskillisdiscrimination,theabilitytochooseuponwhat,where,andwhomourattention,ourabilitytoconcentrate,isdirected.Businessownerswhodonothavetheskillofdiscriminationtendtobelievethateverythingisofequalimportance.Theyoverlookthesignificantinfavoroftheurgent.Thatwhichishappeningaroundthemcapturestheirattention.BobJones,Sr.onceadvised,“Neversacrificethepermanentonthealtaroftheimmediate.”Thethirdessentialskillisorganization,theabilitytoturnchaosintoorder.Therearethreethingsthatcanbesoorganized:time,space,andwork.Theorganizationoftimepreventstheoverutilizationofenergytoachieveone’sobjectives;justenoughtime—andnomore—withinwhichtherightactioncanbeefficientlyperformed.Theorganizationofspaceproducestherighttoolsintherightplaceintherightquantitytosupporttherightactionwithaneconomyofeffort.Theorganizationofworkidentifiesthenaturalwaytotakeaction,therelationshipsbetweenfunctions,andthecoordination

betweenthetwo.Thefourthessentialskill,innovation,turnsorderintorightaction.Innovationissometimescalledthe“BestWay”skill;itisalwaysinsearchofperfection.Whileorganizationisinterestedinefficiency,innovationisconcernedwitheffectiveness—faster,cheaper,smoother,softer.Thefifthessentialskilliscommunication.Itistheskillthroughwhichresultsareproducedintheworld.Communicationtouchesandistouched,reachesoutandisreachedfor,movesandismovedupon,actsandisactedupon.

CHAPTERTHREE

THEE-MYTHENTERPRISEMATRIX:THEFOURCATEGORIESOFPREFERENCE

Theconstituentsofmatterandthebasicphenomenainvolvingthemareallinterconnected,interrelated,andinterdependent….Theycannotbeunderstoodasisolated

entities,butonlyasintegratedpartsofthewhole.

—FritjofCapra,TheTaoofPhysics

Onmysixteenthbirthday,manyyearsago,Iboughtaveryspecialcar.Itwasa1947Fordcoupe.

IthinkofJohnAnderson,themanwhosoldittome,asthequintessentialentrepreneur.

NotthatIthoughtofhimlikethatatthetime.AtthetimeIwasn’tinterestedinbusiness.Iwassimplyasixteen-year-old

boywhowasabouttonegotiatethemostimportantdecisionofhislife,andJohnAndersonwasthemanwhowaseithergoingtomakeitpossibleornot.

Inretrospect,IknowthatJohnAndersonwasabusinessgenius.Whetherbyintentionornot,hedideverylittlethingright.

AfewwordsaboutJohnAnderson.Hewasn’tinbusinessatall,butanengineerworkingatLockheed.IsawhissmallclassifiedadintheAnaheimBulletin,announcingthefact

thathehada1947Fordforsale.Theadsaid,mysteriously:“Onceyouseeit,you’llwonderwhy.”Icalled,scheduledanappointmentforthefollowingdayafterschool,then

proceededtoclimbthewallsfortwenty-fourhoursuntilthetimecametoseethecar.

WhatIhadfailedtotellJohnAndersonoverthephonewasthefactthatIhadthreeseeminglyinsurmountableproblems.

hadthreeseeminglyinsurmountableproblems.One,Ihadn’ttoldmyfolksthatIwasgoingtobuyacar.Two,Ididn’thaveenoughmoneytobuyacar.And,three,Iabsolutelycouldn’tliveforanotherdaywithoutowningmy

owncar!ItwaswiththatknowledgefesteringinsideofmethatInervouslyrangJohn

Anderson’sdoorbellthatThursdayafternoon.JohnAndersonopenedthedoor.Hewasaslim,tall,nondescriptmanwithneatlycroppedblondhairand

brightblue,intelligent-lookingeyes.Hewasinhisearlyforties,althoughhelookedmuchyounger.

Hewaswearingakhakishirt,openatthecollar,andmatchingtrousers.Bothwerestarchedandpressedwithamilitarycrispness.

Hisbrownshoesgleamed.Hesmiledwarmly,shookmyhand,invitedmein,introducedmetohiswife,

whowasshellingpeasatthekitchentable,thenledmeouttothegarage,wherehetoldmehekeptthecar.

Thesmall,white,single-cargaragestoodseparatelyfromthehouse.IfollowedJohnAndersontothegaragedoorandwaitedforwhatseemedlikeaneternitywhileheunlockedalargepadlocksecuredtothedoorhandle.

AsthoughanticipatingthequestionIdidn’thavethenervetoask,hesaid:“Ikeepthedoorlocked,justincase.”

Incaseofwhat,Icouldn’timagine.Untilheopenedthedoor.Standingbeforeuswasthecar,completelyenclosedinatight-fittingcanvas

tarp.Thesoleobjectinthegarage,itsatfrozen—asthoughhovering—inthespacebeforeme.Itwasasurprisepackagewaitingtobeopened,amysterywaitingtoberevealed.

ItwasasifJohnAndersonhadbroughtmetohisgaragetounveilasecrethehadbeenhidingthereforwhoknowshowlong—onehewasabouttosharefortheveryfirsttime,withme,andonlyme,hisunwittingcoconspirator.ItwasalmostmorethanIcouldbear.

“Wouldyouliketohelpmetakethisoff?”heaskedashemovedtothefrontofthecar,touchingthecanvastarplightlywithhishand.

Washekidding?Imumbledsomethingincoherentlike,“Mmhmm,”thenwaitedforthe

instructionsIknewwouldcome.InstinctivelyIknewyoudidn’tsimplygrabatarplikethisanddumpitontheground.

Fortunately,Ididn’thavetowaitlong.“JustdoexactlywhatIdo,”JohnAndersonsaid—asifIwouldhavedared

todoanythingelse.Hemovedtothefrontrightsideofthecar,motionedmetotherearright

Hemovedtothefrontrightsideofthecar,motionedmetotherearrightsideofthecarwithanodofhishead,thenreacheddownandbegantopullthetarpstraightupoverhead.Ididthesame.

Yet,asmuchasIwantedtofollowhislead,Icouldn’thelpbutbedistractedbywhatcameintoview.

Thecarabsolutelyglistened.Firstcamethechromebumper,thenthelightgrayrearfender,thenthe

brightburnishedredofthetaillight.Each,inturn,glistenedwithalusterofitsown.Eachpartaccentuatedtheother,magnifiedtheother,transformedtheother,

enrichedtheother.Itwasloveatfirstsight!Icanseethat’47FordcoupeasclearlyandaswonderfullytodayasIsawit

thatfirsttimeinJohnAnderson’sgarage.Asweliftedthetantarpupandovertheroof,foldingitasheindicated—likeaflag—withloving,deliberateattention,weslowlyrevealedeachpartofthecar:firstthechromebumper,thenthegrayfender,theredtaillight,therearwindow,theroof,thetrunk,thechrometrunkhandle,until,allatonce,theymergedintoawholecar,apresence—ashininggift—betterthanIwouldhavedaredtoimagine,betterthanIpossiblycouldhaveconceivedinmymind’seye.

Aftercompletingthefolding,JohnAndersontookthetarp,openedthetrunkofthecar,laidthefoldedtarpdowninside,softlybutfirmlyclosedthetrunkdoor,thensteppedquietlyaside,wherehestoodwaitingwithoutsayingaword.

IthinkIsaid,“Wow!”butIcan’tbesure.IfIdid,itwastomyself.Thecarheldmeinthrall.

Thewhitewalls,thechromehubcaps,thedeep,darksymmetricaltreadofthetires,thewindows,thechromedoorhandles,thefenders,thedoors,theslow,liltingcurveofthecaritself—allcametogetherintoaluminescentstatementaboutwhatacarcouldmeantoasixteen-year-oldboy.MorethananythingIcouldhavesaid,orJohnAndersoncouldhavesaid,morethananyonecouldhavesaid—thisshimmeringlittleFordcoupe,withitsmeticulouscleanliness,itsdeepsenseoforder,saiditall.

Nothingcouldhavebeenmoretothepoint.Nothingcouldhavetouchedmeanydeeper.ThenJohnAndersonsaid,“Let’sgoforaride.”Therearefourcategoriesofpreferencethateverybusinessmustsatisfyin

themindsandheartsofeachofitsfourprimaryinfluencers.

Visualpreferences,emotionalpreferences,functionalpreferences,and

financialpreferencesmakeupwhatIcalltheE-MythEnterpriseMatrix.

JohnAndersonintuitivelyunderstoodthisidea.

ToJohnAnderson,thesaleofhis1947Fordcoupewasmuchmorethanacommercialtransaction.Indeed,thecaritselfwasmuchmorethanacar.

ToJohnAnderson,his1947Fordcoupewasanidea.Thesaleofhis1947Fordcoupewasthereforeanextensionofthatidea.AndsowasJohnAndersonhimself,andI,and,withoutknowingit,my

parentsandJohnAnderson’swife.Allofuswereanextensionofthatidea,allofusinfluencers,allofusinfluenced,allofuspossessingpreferencesthatneededtobesatisfied—thatwouldbesatisfied—fortheideatobecomeaction,fortheideatomoveintoitsfutureandfinditselfjoinedwiththeworld.Visualpreferences,emotionalpreferences,functionalpreferences,financialpreferences.

TheideaofJohnAnderson’s1947Fordcoupeheldwithinitallofthepossibilitiesthatwouldunfold—possibilitiesthatwerealreadythereattheinstantofitsconception.

Withinthatparticular1947Fordcouperesidedthesixteen-year-oldboyinbothJohnAndersonandme,aswellasallmothers,allfathers,allwives.

Eachofuslovedit,hatedit,neededit,avoidedit,wishedit,dreamedit,createdit,negatedit,defendedit,deniedit,dreadedit—lustedafterit—alongwithourrelationshipswitheachother;ourrelationshipswithourselves;ourideasofacar;ourideasofbuying,selling,andmoney;ourideasofeverysingleunavoidableandinterdependentpartofthiscomplex,subtle,andhopelesslyentangledwebofinteractionsandcontradictionsamongthethoughts,feelings,andfleshofvirtualstrangers.

This,afterall,was—andis—whatthegamecalledbusinessisallabout.Whatwastobecomeandhasremainedinmymindandheart—asuccessful

businesstransactionforbothJohnAndersonandme—nevercouldhavehappenedhadnotheinstinctively,yetunwittingly,usedtheE-MythEnterpriseMatrixinhisrelationshipwithhimself,myparents,hiswife,andme.

Aswedrove,hetalked.“IguessyoumightsayIhaveapassionformechanicalthings:howthey

look;howtheyfunction;howtheyexceedtheirownlimits;howtheyfitintotheworld.It’salwaysbeenapassionofmine,foraslongasIcanremember.”

Heturnedtolookatmeandsaid,“Howaboutyou?Doesanyofthismeananythingtoyou?”

“Idon’tknow,”Ianswered.

ButwhatJohnAndersonwassayingremindedmeofmysaxophoneteachermorethananythingelse.

“YouandMerlewouldreallygetalong,”Isuggestedtohim.“I’veneverknownanybodyasinterestedasMerleisinhowtomakethingsworkaswellastheypossiblycan.He’sanabsolutegeniuswhenitcomestofine-tuningmysaxophone.AllthewhileIfiguremyhornisaboutasgoodasit’lleverget,andthenMerledoessomethingtoit,andit’satotallynewhorn!Isthatwhatyoumean?”

JohnAndersonwasgrinningfromeartoear.“That’sitexactly,”hesaid.“That’swhatthiscarmeanstome.It’sthe

perfect1947Fordcoupe.IfIwantedtobuyausedcar,I’dwantittolookjustfinelikethis.I’dwantittodrivejustlikethis.I’dwantsomeonetohavecaredforitjustlikethis—likeitwasthemostimportantthingintheworld.Likewhateveritcouldbe,itwas.”

Heturneddownaquiet,tree-linedstreet,pulleduptothecurb,andparked.“Whydon’tyoutryit?”hesaid.AsIthinkbacktoit,itisasthoughIwerefatedtoownthatcar.AsthoughtheadintheAnaheimBulletinhadbeenaletterwrittendirectlyto

me.Asthoughthe1947FordcoupeinJohnAnderson’sgaragewaswaitingjust

forme.AsthoughheknewthatIwouldbetheonlyonetocall,theonlyonetoshow

upathisdoor,andthatIwouldbetheonlyonetodriveawayinhiscar.Andthatwhateverneededtobedonetoaccomplishthatend,hewoulddo,wouldhandle,andwouldtakeresponsibilityfor.

Afterdrivingthecarbacktohisgarage,replacingthetarp,andlockingthegaragedoor,wesatdownathiskitchentabletotalkbusiness.

HeneverevenaskedmeifIwantedtobuythecar;itwasaforegoneconclusion.

Instead,wetalkedaboutmyproblems.Myparents,mymoney,andmyneed.Aswetalked,apictureofthecarwaitingoutsideinthegaragehoveredin

mymind.Aswetalked,thefeelingofthecar’ssteeringwheellingeredinmyhands.Aswetalked,Icouldfeeltheexhilaratingsensationofdrivingquietlydown

thetree-linedstreet—inmycar.Icouldseethefleeting,shimmeringshadowsoftheleavesastheypassedsilentlyoverhead—inmycar.Icouldseethecrystal-cleargleamofthewindshield,thesoftgraysheenofthesheets,andthedeepburnishedchromedashboardJohnAndersonhadhadspeciallymade—formy

car.Aswetalked,itwasalloverbuttheshouting.JohnAndersoncalledmyparents.“Itseemswehaveaproblem,”hesaid.“Yoursonwantstobuymycar,andIdon’tthinkwehaveachoiceinthe

matter.Butbeforewetalkaboutit,I’dlikeforustomeet.”Icouldimaginemymother’sdark,worriedfrownattheotherendofthe

phone,myfather’susualuncontrollableangeratbeingtrappedintothediscussionhedidn’twanttohave—didn’tneedatthistime.Iwaitedfortheexplosion.But,surprisingly,itdidn’tcome.JohnAndersonlistenedquietlyandattentivelyforamomentortwo,noddedaffirmativelyafewtimes,agreedtosomethingapparentlysuggestedbymyparents,thenhungupthephone.

Theywerecomingoverinthirtyminutes,andIwastowaitforthem.NeedIpaintyouapictureofmyparentscomingtoJohnAnderson’sdoor,of

howweirdIfeltstandinginthehomeofsomeonewho,onlytwohoursbefore,hadbeenastranger(butwhonow,insomeoddandunfathomableway,hadtakenonthemantleofasurrogatefatherforthespecialritualthatwasunfoldingbeforeus)?NeedIdescribewaitingformyparentstosayhello,toacknowledgemypresence,waitingforthethunderoftheirterribleangeratbeingcaughtupinthisdrama?

NeedIpaintyouapictureofJohnAnderson’swarmandrespectfulgreeting—ofthecalm,graciousmanmyparentssawbeforetheminhisneatkhakiclothes,inhisneatandnormalhome,withhisbrightyetverycalmblueeyes?

NeedIdescribehiswife,whobynowhadbecomeaveryrealparticipantinthisstrangelynaturalunfoldingevent,smilingwarmlyinherlivingroom,invitingmyparentstotakeaseat,thecoffeeandcookiestheysharedtogether,withmehoveringonthefringesoftheirconversationlikesomenervous,fretting,anxious,andpesteringoldbird?

NeedIpaintapictureforyouoftheeventualwalktothegarage—thatmysterious,wondrousplacethatIhadfirstwalkedtoonlytwohoursbefore?OutofrespectforJohnAndersonandoutoftoleranceforme,myparentsweregoingtolookatthiscar,thistroublesomethingthathadsuddenlybroughtsomuchunneededemotionanddisordertotheirlives.

NeedwetakeinthesurpriseIwitnessedontheirfaces(especiallymyfather’s),astheysawwhatIhadseenwaitinginthegarage,andasmyfatherawkwardlyperformedtheritualwithJohnAndersonandthespotlesstantarpthatIhadperformedsoawkwardlyonlyashorttimebefore?

Ihadneverseentheboyinmyfather’sfaceuntilthatmoment,andIneversawitagainafterthatday.

NeedItakeyouontheunnecessarybutinevitableridethefourofustook—likeahastilyassembledfamily,myfathertoobigandsolidatthewheelforsuchanephemeraloccasion,JohnAndersonrelaxedandsmilinginthepassenger’sseatbesidehim,mymotherandIsittingstifflyuprightsidebysideinthesmallbackseatliketwodarkbirdsonatelephonewire,staringstraightahead,afraidtolookateachotherforfearsomespellmightbebrokenandwewouldallsuddenlyandterriblydisappearfromthefaceoftheearth?Suchastrangeanddreamyspectaclewemusthaveseemedtopeopleaswepassedbyontheroad,aswecarriedoutthemanyseparateyethyphenatedstepsofthisextraordinaryritual.

Needwegothrougheachofthosestill,quiet,intense,vivid,andunforgettablemomentsthatledusallremarkablyanduncomplaininglytotheveryend—thatinvisible,magical,andseamlesspointatwhichthepiecesofthisextraordinaryyetordinaryritualfinallyjoinedtogetherasnaturallyandaseffortlesslyastwoVelcrostrips?

NeedIsayit?Thedealwasdone!

VISUALPREFERENCES,EMOTIONALPREFERENCES,FUNCTIONALPREFERENCES,ANDFINANCIALPREFERENCES

Thepotencyandvitalityofabusinesscanonlybeactualizedtothedegreethatitfillsthepossibilitiestobediscoveredwithineachofthesecategoriesofpreferenceastheyareexperiencedbyeachoftheirfourprimaryinfluencers.

Ifyoudonotbelieveme,seethecar!Seethegarage!SeeJohnAnderson!Feeltheorder,thecontrol,theexquisitenaturalnessofthispotentially

disastrousevent.Everyone’spreferenceswereserved:myparents’,JohnAnderson’s,his

wife’s,andmine.Weallgotexactlywhatweneeded—whatwewanted.Itwasamarvelofsynchronicity.Let’stakealookatthecategoriesofpreferenceoneatatime.

DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS

(ListentothePodcastversionatMichaelEGerber.com)Therearefourcategoriesofpreferencethateverybusinessmustsatisfyinthemindsandheartsofeachofitsfourprimaryinfluencers.

VisualpreferencesEmotionalpreferencesFunctionalpreferencesFinancialpreferences

TheymakeupwhatIcalltheE-MythEnterpriseMatrix.EachofthesecategoriesisaccompaniedbyspecificcriteriathatmustbemetiftheenterpriseistobeanE-MythEnterprise.

Followmeonajourneythatwillmakethisclearandsignificanttoyou.

CHAPTERFOUR

THEFIRSTCATEGORYOFPREFERENCE:THEVISUALIDEAL

Younevergetasecondchancetomakeafirstimpression.

—Anonymous

WhenIfirstread“TheRedWheelbarrow,”apoembyWilliamCarlosWilliams,itwasasamuchyoungerman.Butitwasn’tuntilIfoundmyselfdrivingalongawindingSonomaCountycountryroadwithaclosefriendonarainyspringafternoonseveralyearslaterthatIfullyappreciatedit.

Ifyou’veneverbeenthere,thespringtimehillsinSonomaCounty,California,arelikearollinggreensea.Nestledbetweenthewavesaresmallranches,oakandeucalyptustrees,low-lyingbrush,andoutcroppingsofbrownjaggedrock.

Weweredrivingalonganarrowfence-linedroadwhenwecametoasharpturn.Uponturningthecorner,wesuddenlycameface-to-facewithascenesovivid,sostriking,thatIcanclearlyremembereverypartofittothisday.

Itwasasmall,yellowranchhouse,withbrightgreentrimaroundtheeavesandwhitemoldingaroundthewindowsandthedoor.

Asweturnedthecorner,thesuncameoutfrombehindastormcloudandstruckthehouse,transformingitintoablazeofyellowlightshotupfromthegroundandblindingmewithitsradiance.Myfriendmustalsohavebeentemporarilyblinded,becauseheslammedonthebreaks,andweskiddedtoahaltdirectlyinfrontofthesmallhouse’sfencedfrontyard.

Standingbeforeusinthemiddleoftheyard,halfwaybetweenthefenceandthehouse,wasalarge,glowing,brightred,meticulouslycaredforantiquewagon.Thedropsofrainwaterstreamingdownitssidesglistenedinthesunlikediamonds.

Butthatwasn’tall,forsurroundingthewagonwasayardfullofpurewhite

Butthatwasn’tall,forsurroundingthewagonwasayardfullofpurewhiteturkeys,theirredwattlesbobbingupanddown.

Canyouseeit?Canyoufeelit?Canyouholdthisimageinyourmind?Doyouwonderwhoseyarditis,and

whythewagon,andhadsomeonejustfedtheturkeys?Whatsmellsdoyouassociatewiththispicture?Whatfeelingscometomind?Whatthoughtsarisefromyourpast,fromyourimagination,fromideasyouhadaboutsuchthingswhenyouwereayoungboyorgirl,orevennow,asyouaretoday?

Canyouseehowprofoundlywe’retouchedbysuchvisualimages?Itshouldbecomeimmediatelyobvioustoyouhowimportanttheconception,

creation,andmaintenanceofastrongvisualimpressionistotheultimatesuccessofabusiness.

Abusiness,likeafarmyard—likeanoldcountryroad—isfirstandforemostavisualthing.Whatabusinesslookslikecommunicatesmoreaboutitsthoughts,feelings,considerations,andintentions,moreimmediatelyandmorelastingly—morehumanly—tothepeoplewithwhomitinteractsthananythingelsethatbusinesscando.

AsWilliamCarlosWilliamssaid,“Somuchdependsuponit!”Andsomuchdoes.Itisvirtuallyimpossibleforanyonetoseeanythingwithoutdrawingan

instantaneous,ifunconscious,conclusionaboutit.Infact,itisnotsomuchthatwequicklydrawconclusionsaboutwhatwe

see,butthattheconclusionswedrawwerealreadydrawnlongbeforewesawit.Eachofuspossesses(or,moreaccurately,ispossessedby)avast

undergroundvisualstorehousewecallourunconscious.Thisstorehouse,ourunconscious—thispicturebook—isburstingwitha

rich,complexassortmentofvisualsymbols,associations,interpretations,judgments,meanings,feelings,andphysicalreactions—inshort,conclusions—allofwhichconspireautomaticallywitheachotherwithlaserlikespeed,toshapeourveryexistence.

Whatwewear,whatwedrive,wherewework,whereandhowwelive,whatwethink—theveryobjects,spaces,colors,distances,forms,andpeoplewesurroundourselveswith,andbywhichwe’resurrounded—areallsignificantpartsofthisextraordinarilycomplexwebofvisualconclusionseachofushasformed.

Amothernursingherchild;agrandmotherpreparingtheThanksgivingturkeyforhergrown-upchildrenandhergrandchildren;ayoungfatherroughhousingwithhissonandtheirLabradorretrieverinthebackyard;thatsameman,growngray,showinghisgrandsonhowtotuneacarburetorina

periodtruck;atall,distinguishedmaninanimpeccablytailoreddarknavybluesuit,waitingoutsideacontemporaryofficebuilding—allarepictures,visualrepresentationsofdeeplyheldconclusionsweallhavemadesometimeinourlives.TheymayevenberepresentativeofCarlJung’sarchetypes—picturesweallshare,picturesthattouchusallinmuchthesameway.Thereareaninfinitenumberofsuchpictures,waitingtobeunderstood,waitingtobeidentified,butworkingunconsciouslyineachandeveryoneofusinthesameway.Nomatterwhatanyofusthinks,theyshapeourlives.

DoyouseewhatImean?Doyouunderstandtheimportanceofthisconcept?Somuchdependsuponit!Ifallthatweseetouchesussoimmediately,socompletely;ifeveryvisual

impressionwereceivecauseseachofustofeel,think,andactinacertainpreprogrammed—ifnottotallypredictable—way(anditdoes!),isitanywonder,then,thattheconception,creation,andmaintenanceofthevisualimpressionofabusinessissocriticaltoitssuccess?

ShoulditcomeassuchasurprisetoyouwhenIsaythattoconceive,create,andsuccessfullymaintainanextraordinarilyeffectivebusiness—anE-MythEnterprise—hasmuchmoretodowiththemanagementofimpressionsthanithastodowiththemanagementofpeople?

Themanagementofimpressionsisthemanagementofpeople.Andvisualimpressionsarethemostpowerfulimpressionsofall.Theproblemseemstobethatthevastmajorityofbusinessesinthiscountry

—smallorlarge—simplydon’tgetit,orwhat’sworse,simplydon’tcare.The“searchforexcellence”intheoryseemssomehowtohaveeludedusin

practice.Contrarytopopularbelief,there’sanoverwhelmingpovertyofthe

entrepreneurialspiritinthiscountry.Walkordrivedownjustaboutanycommercialstreetorwalkinsidejust

aboutanybusinessyouchoose,andyou’llimmediatelybeaccostedbythevisualsymptomsofourentrepreneurialmalaise.

Signs,windows,sidewalks,buildings,trucks,employees’dress,bathrooms,floors,countertops,aisles,walls—rundown,dirty,wornout,unimaginative,decaying,cluttered,confusing—avisualmess!—businessesdisintegratingrightbeforeoureyes.

Yetallthosesignswerenewonce,allthewindowsnewlyinstalled;allthefloors,thewalls,thebathrooms,thedesks,thefilecabinets,thetrucks,theautomobiles,theforklifts,themerchandiseracks,everysingleelementofeverybusinesswasattheoutsetafunctionofsomeone’sdream.Whathappened?Whatstoppedworking?Whatdopeoplethinkastheygotoworkthere,asthey

buythere?Whataretheownersthinking?Ibelieveitcouldbeproventhatavisuallydeterioratingbusinessistheactof

anemotionallydeterioratingmind.Whatdopeoplefeelastheyarevisuallyaccostedeverydayoftheirlivesby

allofthisnegativity,neglect,anddisinterest?Well,letmetellyouastory.Thereoncewasarelativelysmallcompanythatwasstrugglingagainstgreat

oddstogainmarketsharefromahugeGoliathofacompany.Thelittlecompanysputteredforyears,sufferingfrompoorleadershipandamixofnearlyindistinguishableproductsthatconfusedconsumers,thatperformedpoorly,thatwereunattractiveindesign.Theiralreadymeagermarketsharecontinuedtoplummet,asdidthevalueoftheirstock.Theywereonthevergeofgoingawayforeverwhensomeonehadabrilliantidea:“Let’sbringbackoneofouroriginalfounderstoruntheplace.Heappearstobethelastpersonassociatedwiththiscompanywhohadanysortofvision.”

Sotheydid.TheybroughtinafoundingpartnertobethenewCEO.Sodirewasthefinancialconditionofthecompany—butsomuchfaithdidthenewCEOhaveinitspotential—thatheagreedtoreturntoworkforanannualsalaryofonedollar,plusstockoptions.

Hebegantoturnthingsaroundalmostimmediately.Heoversawthedesignofasleeknewproductandsoonthereafteroffereditinarangeofbrightcolorsthatweremimickedbyscoresofothercompaniesthatmanufacturedeverythingfromringbinderstokitchenblenders.Theproducttookoff.Itsetanewstandardforvisualpreferenceintermsofcolor.

Successfollowedsuccess,untilonedayin2001,theCEOstoodinfrontofacrowdatthecompany’sannualconventionandannouncedanewproductthatwouldrevolutionizeanentireindustry,andeventuallyaccountfor70percentofaparticularmarket.

Yes,thatCEOisSteveJobs.Thecompany,ofcourse,isApple.ThelonglistofrevolutionaryproductsincludestheoriginalcolorfuliMac,theiPod,iTunes,andtheiPhone.Thecompanyisnolongeronthevergeofextinction,andthestockoptions(alongwithhisPixarAnimationStudiosinvestment,ofcourse)provedtobeagoodthingforSteveJobs.Heisnow,amongotherthings,theWaltDisneyCompany’slargestsingleshareholder.

Throughitsproducts,itspackaging,anditsretailstores,Appledemonstrateshowimportantthevisualidealistobusiness.

Letmetellyouanotherstorythatwillfurtherilluminatethispointforyou.It’sabouttwobrotherswhoownedagreatstore.

Notthatitwasalwaysagreatstore—itwasn’t.Indeed,ifyouhadseenitwhenIfirstsawit,you’dhavehadtoagreewith

Indeed,ifyouhadseenitwhenIfirstsawit,you’dhavehadtoagreewithmethat,inMartyandSolWeissberg’sbusiness,avisualrenaissancehassincetakenplace.

“Atransformation,”Martycalledit.“Amiracle,”saidSol.Butwhateveryou’dcallit,ithappenedthisway.

Severalyearsago,MartyWeissbergwascalledhomefromgraduateschoolattheUniversityofSanFranciscotohelphisolderbrother,Sol,runthefamilybusinessaftertheirfather,Morris,diedunexpectedlyattheyoungageoffifty-three.

Fortunatelyforbothofthem,thebusiness,Weissberg’sArmy-NavySurplusStore,sortofranitself,ifonlyinalacklusterway.

Customerscameandwent;employeestoo.Nobodyseemedtoknowwhy.AlthoughSolandMartyhadbothservedtheirapprenticeshipinthebusiness

fromtheagesofeightandten,respectively,mostoftheirtimehadbeenspentattheirfather’sbeckandcall,unpackingthegreen,gray,blue,brown,andblackmilitarymerchandisethatarrivedinenormousbrowncardboardboxesfromwho-knew-whereandpricingitaccordingtotheirfather’scryptic,hand-printedinstructions,usingapricingstrategyonlyMorrisunderstood.Theythenstackedthemerchandiseonthealreadyjam-packedshelvesorhungitonthespecialracksthattheirfatherorderedthemtomovearoundthestoreatwhatwereapparentlystrategicallysignificanttimesoftheweekorthemonth—fromthebackofthestoretothefront,toeithertherightsideortheleft,downthemiddleaisleorbythecashregister.Onclear,sunnydays,somemerchandisewasmovedtothesidewalkandceremoniouslylabeledSALEinbrightredletters(eventhoughbothMartyandSolknewthatthepriceshadn’tbeenchanged).

MartyandSolsweptthefloors,threwoutthetrash,cleanedthewindows,andoccasionally—onlyoccasionally—wereentrustedto“workwiththecustomers”whotheirfatherseemedtoknowwouldn’tbuy,andrarelydid.Morrisdealtwithalltherest—the“real”customers.

Unfortunately—anddespitethelong,dreary,chore-filledhourstheyspentinthestoreafterschoolandonweekendsformostoftheiradolescentyears—neitherMartynorSol“knewthebusiness,”astheirfatherwasgiventosay.Morriswassobusyworkingthestorethathehadnevergottenaroundtoteachingthem.

Andthenhedied,andthestorewastheirs—abusinessbothMartyandSolhated,notonlyforallthetimeithadtakenfromthemasboys,butfortheirinability—nowthattheycouldfinallybefreeofitonceandforall—tosaygood-

inability—nowthattheycouldfinallybefreeofitonceandforall—tosaygood-byetoit,toletgoofit,andfinallytogetonwiththepurposeoftheirindividuallives.

Perhapsthatwasit.Therewasnopurpose.ToMartyandSol,iftherewasalifeotherthanthebusiness,theydidn’t

knowwhatitwas.Sotheylivedtheonlyonetheyknew.Forthefirstsixmonthsorso,SolandMartygloweredateachotheracross

distancesoftheirownmaking,repeatinginsilencethedrearyritualsoftheirboyhoodspast.

Butnow,withouttheirfathertogoadthemon,theritualswereevenmorelifelessthanbefore.

NoMorriswastheretotellthemtomovetheracks.NoMorriswastheretoremindthemtopainttheredSALEsigns.NoMorrisexhortedthemtosweepthefloors,totakeoutthetrash,orto

washthewindows.

No,therewasnoMorristheretodoit,soSoldidit.Hedidtheonlythinghecouldthinktodo:hebecameMorris.Hebecame

thefatherthetwoofthemhadlost.OnedayhewasSol,thenextday,Morris.Sol,infact,becamethechief

proponentof“OldCo.”Hewasdoingthethingsofthepast,inthewaysofthepast.

Hebegantospendlonghoursafterthestorewasclosed,whileMartyhadgonehometorummagethroughhisfather’seffects,toseekoutclues—atrail,asign,thatcouldteachhimwhathisfatherneverdid—thatcouldteachhimwhathisfatherknew.

AnewlightinMartywasbeginningtoform.Martywasbeginningtoawakentotheexhilaratingpossibilitythathewasnow,finally,freetobecomehimself.MartybecameaninspiredDreamer,eagertotransform“OldCo”into“NewCo.”

Youcouldseeitinhiseyes.

AfriendofminewhoworkedcloselywithWaltDisneyformorethanfifteenyearsrelatedtomewhatitwasthatmadeDisneyaspecialmantoallthosewhoknewhim.

“Hehadtheinnateabilitytoseethingswholeinacompletelyoriginalway,”myfriendsaid.

“Whereeveryoneelseinameetingwouldbecaughtupinspecifics,Waltcouldseethefinishedproduct,hecouldenvisionwhateveryoneelseseemedtomiss—themagicthatlivedwithineveryprojectjustbeneaththesurface,waitingtobediscovered.”

“That’swhereWaltlived,”myfriendtoldme,“inthemagicbeneaththesurfaceofthings.Andonlywhenherevealedwhathesawtherediditbecomeobvioustoeveryoneelsethatitwasthereallthetime.”

That,Imightsuggest,isalsowhereMartyWeissberginhisownsmall,butnotinsignificant,waywasbeginningtolive—beneaththesurfaceofthings.

Indeed,Ibelievethatitisthere,beneaththesurfaceofthings,wherethesurface,thetruereality,actuallyresides.

Andsoitisthatthevisualpreferenceissoimmediatelycriticaltothe

successofabusiness.

OnedaythatthoughtcametoMarty.Ithithimsquarebetweentheeyes.Martyclearlysaw,fortheveryfirsttime,whathadalwaysbeenthere,hadhauntedhimthroughouthischildhood,hadclungtohimlikeanoppressivegrayfogasheleftschooleverydayonhiswaytothestore,hadwaitedforhimlikethatenormous,grotesqueSumatrantoadhehadonceseenatthezoo,squattingmotionlessasastoneinitssmallglassaquarium,itsmottledbrownlumpyskinglisteninginthegreen-graytropicallight.Itwasallsougly!

Fromthefrontofthestore,withitsfadedredneonlettersspellingoutthefamilynameinbelligerentblocklettersfourteenfeetlongandfourfeethighacrossthesquat,squarefaceoftheoldbrickbuilding,totheinsideofthestore,withitslow,browntinceilinganditsrowsoffluorescentlights,whichcouldneverbrightenthedarknessofthestorebeneaththem;fromtheblack,perenniallysoiledlinoleumfloors,thegraymetalrackswiththeirsqueakyrubberwheels,andtherowsofdarkmetalshelves,tothehand-letteredsignshangingfromtheceilingtellingthecustomerswheretofind—amongthebewilderingarrayofsloppilystackedmerchandise—thepants,jackets,boots,socks,belts,knives,canteens,shirts,hats,tents,sleepingbags,mosquitonets,socketwrenches,andalltheotherexoticmilitaryparaphernaliaknownassurplus—italldisplayedablatantlackofattention,ofcare,ofimagination,ofinterest.

Thentherewasthebackofthestore:themassive,rusted,steel-frameddoors;thethick,scarred,ancientplanksofthefloorandtheloadingdock,stainedblackfromyearsofabuse;theswollen,cracked,andtorturedasphaltofthenarrow,

twistingalleywithitsever-presenttrash,brokenbottles,overflowinggarbagecans,andsaggingchain-linkfencesrunningbetweenthedark-stainedbrickbackwallsoftheneighboringstores.

Finally,therewasthebathroom:smallanddank,likeacold,sweatycloset,withitsunpaintedconcretefloor,boththewashbowlandtoiletstainedandstreakedafteryearsofuse;withitssolitary,nakedhundred-wattbulbhangingfromtheimpenetrableshadowsabove,theonlyotherlightcomingfromasmallwindowabovethesink,barredagainstforcibleentry(asthoughanyonewouldwanttobreakinthere!).Thewholeroomwasfilthyfromyearsofneglect.Thedirt,thecobwebs,andwhateverotherindescribableblighthadrisenfromthealleybehindthestorehadcrustedoverthewindowandcastayellow,spottedpalloverthepeeling,dampbrowndoorandwalls.

Asaboy,Martywoulddoanythingotherthangotothebathroominthatstore,andwhenhefinallycouldn’twaitanylonger,he’dgodownthestreettothegasstationatthecorner,whereatleasttherestroomwasclean.

Atlast,Martyfullyunderstoodwhatitwasaboutthestorethatsodeeplydepressedhim.

DespitewhatMartyhadalwaysbelievedtobetrueabouthisfather—thathelovednothingelsebuthisbusiness,thathecaredfornothingelsebutthestore—Martynowknewthatexactlytheoppositewastrue.

HeknewthatthestorehadsoangeredMorris—soinfuriatedhim,soconsumedhim—thattherewassimplynothingleftforanyone,oranything,else.

Itwasn’tthefactthathehatedthestorethatdepressedMartysomuch,butthathisfatherhad.

TheuglinessofWeissberg’sArmy-Navywasamutebuteloquenttestamenttothefactthathisfatherfelthimself—andthenbecame—aprisonerthere,untiltheonlywayoutwastodie.

SothatwasthemadnessthatMartysawinSol’seyes.Likehisfatherbeforehim,Soltoohadbecomeaprisonerofthestore.Like

hisfatherbeforehim,thestoreenragedSol.Likehisfatherbeforehim,thestorebecameSol’sjustificationfornotliving.FirstforMorris,andnowforSol,thestorehadbecometheuglyfactoftheirabsenceofloveforwhattheyweredoingandofthelifetheyhadbothgivenuptodoit.

And,likeMorris,Solmistakenlythoughtthatbypossessingthestore,byowningit—bykeepingithissecret—hecouldultimatelygeteven.

OnlyMartyknewdifferent.

AtDisneyland,ittakes5,000gallonsofpainteachyeartokeeptheparklooking

betterthannew.Thereare500,000costumepiecestomaintainandmorethan100,000lightbulbsthathavetobechangedastheyburnout.Thentherearethegardens,therestaurants,andthemyriadothersmall,insignificanttasksassociatedwiththevisualpreparationofDisneylandforeverydaytheparkopensforbusiness,justasWalthadenvisioneditinhisdreamofthebusinessbackatthebeginningwhenmostpeoplethoughthimtobecrazy(“Youwanttodowhat?”),whentheparkwasjustanoutsized,elaborate,andinsaneidea,which,accordingtocommonbusinesswisdomatthetime(andatthistime,andforalltimes,itseems),couldneverbejustifiedeconomically.Itwasthatidealistic.

McDonald’shasmorethan31,000locations,anditsnearlyhalfmillionemployeesserve47millioncustomersdaily.Recentestimatesrevealthatitcoststhecompanymorethan$7millionadaytoperformthedailyritualofvisuallypreparingthefloors,theequipment,thewindows,theparkinglots,thesidewalks,thesignage,thecounters,theuniforms,andtheequipment—alltheunavoidableandintegralpartsofthevisualintegrityoftheMcDonald’scorporateimageasimaginedbyitsfounder,RayKroc,attheveryoutsetofthebusinesswhenhehadcrewpeoplecleanupallthelitterwithinablockofeachrestaurant.

AtFederalExpress,itcostsanestimated$70,000adaytosteamwashthecompany’s30,000internationallyrecognizedtruckstomakecertainthatFedExmaintainsitsvisualimpactasitwasenvisionedbyFredSmith,longbeforethebusinessbegan,longbeforethefirsttruckrolledoutthedoor.

MartyandItalkedaboutthemiraculoustransformationofhisandSol’sbusiness.

“Iswear,”Martysaidtome,“itstruckmejustlikethat.”Hecontinued,adarklightgrowinginhiseyes.“Therewasthemourningperiod,ofcourse,eventhoughIdidn’trealize

that’swhatIwasdoingatthetime.“Naturally,SolandImournedindifferentways.ToSol,mourningwasan

actofhonoringthepast.Hefeltsomehowthathehadletourfatherdown,thathehaddisappointedhim,thatifhehadtakenamoreactiveinterestinthebusiness,ourfatherwouldn’thavedied.Sohewascompelledtoactouteverylittlethingmyfatherdid,exactlyasmyfatherwouldhavedoneit.

“Tome,”Martycontinued,“mourningwasanactofgrievingformylostchildhood,thegamesIneverplayed,theplayingweneverdidasafamily,thelackofpurejoyinourlife.

“AtfirstIthoughtitwasjustSolwhowasgoingcrazy.ButthenIcameto

“AtfirstIthoughtitwasjustSolwhowasgoingcrazy.ButthenIcametorealizethatwebothwere.But,ofcourse,wehadnochildhood.Ourfatherwasalunatic.Heraisedustobelunatics.Weweresimplyactingouthiswishes.

“Gradually,deepinmyheart,Ibegantofeelasharp,aching,almostunbearablepainfortheextraordinarypricemyfatherhadmadeSolandmepayaschildren:thelossofjoy,thelossofimagination,thelossofcuriosity,ofcolor,ofvitality,ofcreativity,thelossofourchildhood,thelossofourselves.

“IswearIcarriedthepainofthatlossaroundwithmeeveryday,fromthedayIcamehometothestoreaftermyfatherdied,tothedaythatthelightturneditselfoninmyheart.

“And,suddenly,Ifoundmyselffree,notasatwenty-four-year-oldman,butasaboy.Itsuddenlybecamecleartome,notsomuchsomethingIthought,butinaburstoffeelingsostrong,sodeeplycompelling,thatIbegantosobuncontrollably.Imusthavecriedforhours.

“Thismightsoundstupidtoyou,”Martysaidtome,almostapologetically,asthoughwhathewasabouttosaywouldbeimpossibleformetounderstand,“butitwaslikeIfellinlovewithmyselfasaboy.ItwaslikeIhad,inaninstant,becomeboththefatherIwishI’dhadandtheboyIwishIcouldhavebeen.AnditwaslikethefatherIhadnowbecometouchedme,hisson,andsaid,‘Trustyourheart!Whateveryouneedtodo,doit!Don’twait!There’stimeenoughtodie.Iloveyou.”

Martycontinued,almostinawhisper,tearswellinginhiseyes,“Atthatmoment,IlovedmyfathermorethanIcouldeverremember.Icouldfinallycryforhim,forthelossofhischildhood,fortheterriblepricehehadpaidforbeingaprisonerinaprisonofhisownmaking.God,howdesperatehemusthavebeen.”

Hewasquietforamoment,thenwenton.“Andwhathappened,whenIwasreunitedwithmyself,withthisstrangebut

wonderfullittleboyIhadbeen,IfinallyrealizedthatIwassuddenlyfreetodoanythingIwishedwiththestore.Icouldsellit.Icouldgiveitaway.IcouldgivemysharetoSol.IcouldevenburnitdownifIwanted.Ourfatherwasgone.Theprisondoorwasopen.Therewasnotracktofollowbutmyown.Ididn’tneedpermissionanymore!”

Thevisualtransformationofabusinessisanemotionalthing;itcomesbestfromtheheart.Itisacreationthatwhendoneexceedinglywellisalwaysendowedwithapurepassiontotouchsomethingbeyondtheordinary—themosthumanofexpressions,astatementofdignity,ofcaring,ofconsideration,butmostofall,oflove.

Ithaslesstodowiththebusinessasacommercialenterprisethanithastodowiththebusinessasahumanenterprise—itsrelationshipwithpeople,theirideas,andthethingsthatconnectpeopleandtheirideaswiththeworldaroundthem.

Inthisregard,thebusinessdoesn’tonlyproduceproducts,itbecomestheproductofthepeoplebywhomandforwhomitiscreated.

Toeffectivelydifferentiatethebusiness-as-a-productfromallotherbusinesses,abusinessmustbeavisualinterpretationofaspecificandwellthoughtoutpointofvieworphilosophyregardingthequestionswehumanshaveaskedofourselvessincetimeimmemorial—questionsoffreedom,ofGod,oflaw,ofintegrity,ofpurpose,ofloyalty,ofservice,ofhonor,oforder,ofbeauty,ofself-respectandrespectforothers,andmanymore.

Inshort,toriseabovetheordinary,abusinessmustbecomeavisualstatementofbelief,ofmeaning—amediumthroughwhichpeoplecommunicatewithoneanotheraboutwhattheybelievein,whattheycarefor,whatisimportanttothem.

Takentothatlevel,thevisualizationofabusinessisanartform.Andjustlikeaworkofart,thereareatleastsixtangiblecomponentsthatcomprisetheVisualMatrixthatneedtobeconsideredintheconstructionofabusiness.

Thesesixcomponentsarecolor,form,scale,order,detail,andinformation.

Color.ColoristhefirstthingpeopleseeandisthereforeacriticalcomponentoftheVisualMatrix.Whatcolorswillbestcommunicatethepurposeofthebusiness?Isthebusinessplayful?Isitserious?Isitupbeat?Isitformal?Isthebusinessintendedtotouchtheheartsofpeople,justtheirminds,orboththeirheartsandminds?

WhenIsay“playful,”docertaincolorscometomind?WhenIsay“somber,”doyouseethedarkcolorsitevokes?WhenIsay“upbeat,”canyouvisualizewhatthosecolorsmightbe?Canyouhearthesoundssuchcolorsmake?

Form.Whatformdoesthebusinesstake—fromthelogo,tothestyleofdress,tothearchitecture,totheproducts?Isitbold,adventurous,sedate,austere,comfortable,orpowerful?Doesitcallforrounded,softedgesorsharp,angularedges?Oraretherefewedgesatall?

Canyouimagineinyourmind’seyewhatformacomfortablebusiness

mighttake?Doyouremembertheoldyellowranchhouse,withitssmallflockofwhiteturkeysanditsantiqueredwagon?Wasthatcomfortable,orwasitadventurous?CanyouimagineThanksgivinginsuchaplace?Thefamilyaroundthetable;Grandmainherwire-rimmedglasses;Granddadgrinningathisyoungestgrandson,whoissittinginhishighchairandthrowingfoodacrossthetable;everyonechattering,aboutthepast,thepresent,thefuture;foodstreamingandplentifulonthehugediningroomtable?Comfortable?Austere?Sedate?Powerful?Whenyouknowwhatyouwishtocommunicateinyourbusiness,theformwillalmostimmediatelyappear.

Scale.Andwhatofthescaleofthebusiness?Isitbuiltforpeople,orisitbuilttointimidatepeople?Doesittakeourbreathaway,ordoesitmakeuslaugh?Doesitsay,“Thisisgoingtobeonehellofagoodtime,”asDisneylandsays,stretchingoutasitdoesasfarastheeyecansee,ordoesitconfineussothatwesimplywanttogetout?IsitthescaleofaGothicchurchorofaminiaturerailroad?AGothicchurchisnotbuiltforcomfort;aminiaturerailroaddoesnotconveypower.

Order.OrderissuchacriticalcomponentofthevisualbusinessthatIamcontinuallyamazedathowobliviousmostbusinessesseemtobetothepricetheypayeverysingledayforignoringit.Orderisjustwhatitsays:itisallthingsintheirplace;itiscleanliness;itisimpeccability;itisadeep,abidingsenseofcontrol—thatthereisalogic,asensitivity,acommitmenttokeepingthejungleoutoftheclearing;itisabeliefinthespecialqualityofhumanlife;itisthemeticulousattentionpaidtothemaintenance—tothesurfaceofthings,ofsustainingthenewness,thefreshness,theessenceofthingsaswehaveenvisionedthemnew.OrderispreparingthegroundbeforeusasthoughGodhimselfweretovisit.

Detail.Oncepeoplehavewalkedinthedoor,oncetheyhavetakenacloserlook,itistheattentiontodetailthattheybegintonotice:theshiningcopperrivets,exactlyplacedtwoinchesapartonthealuminumwastebaskets;thespeciallydesignedpinwiththecompany’slogoontheshirtsorapronsofeveryemployee.Detailisthecareoneputsintoallthelittlethingsofthebusiness,soaspeoplelookcloser,theyaresurprisedbywhattheyfind.

Information.Everybusinessmustfindavisualwaytotransmitinformationtoitscustomers,itsemployees,itssuppliers,anditslenders—theinformationtheyeachperceivetheyneed—inthemostvisuallycompellingwaypossible.Asmallbusinessconsultingfirmcoversitsreceptionareawallswith“ImpactReports”—lettersfromitsclients—tellingtheworldhowtheirbusinessisimproving.Apetstoreplacescharminglyinformativepicturecardsnexttoeachcage,describingtheinhabitant’straitsasapet,aswellaswheretheycamefrom,whattheyeat,whethertheyaregoodforchildren,andtheamountofcaretheyrequire.Anautobodyshopprovidesitscustomerswithalargeglasswindowlookingontotheshopfloor,whereitsemployeesgoabouttheirspecializedtasksinuniformsandwithequipmentcolor-codedbyfunction,whileaCDplayingoveraPAsystemdescribeswhatthecustomeriswatching.

Ofcourse,thereareoptionsinallofthis.Whetheritbeameatmarket,agrocerystore,anautodealership,a

semiconductorplant,achurch,oranAppleComputerstore,thevisualizationofabusinesscanbeeitherreducedtothemerelypragmaticorraisedtotheideal.Itcanbeordinaryorsublime.

Butitiscertainthatthehigheronereaches,themorepoweronefeels.

Giventheirdifferentperspectives,itwasn’teasyforeitherofthem,butMartyandSolbegantotalk.

Atfirst,SolremindedMartyofMorris.Hegotangry,hestormedawayfromhisoffice.He’dstayhunkereddownathisdeskfordays.

Butgradually,overaperiodofseveralmonths,asMartydescribedit,“Morrisfinallyletgoofhim.”

“Thetruthwas,”Martywenton,“thatSolandIhadmoreincommonwitheachotherthanweeverdidwithourfather.”

Theybegantotalk.Theybegantoshare.Theybegantofeelwhatitwasliketobebrothers.

Atlonglastthegulfbetweenthemvanished,andMartytoldSolwhathehadinmind.

“Iwantthisplacetobecomeaplaceoflight,”Martysaid.“Iwantpeopletocomefromallovertownjusttoseeit,whethertheybuy

somethingornot.

somethingornot.“Iwanttoputinasmallrestaurant,acoffeeshop,andanindoorplayground

forlittlekidstoplayinwhiletheirparentswalkaroundthestore,withsomeonetowatchthemandtakecareofthemforaslongastheirparentswant.

“Iwanttheretobeasmallstreamrunningthroughtheplayground,withawaterfallroaringdownfromtheceiling.AndIwantkoifish—goldenandwhiteandblackspottedkoiswimminginthestream,withgreenplants,andaplaceforthekidstofeedthefishthreetimesaday,andasmallpettingzoo,withlambs,andpygmygoats,andminiaturehorses.Iwanttheplacetobebright,andopen,andcolorful,andmostofallIwantittobeclean,spotless,absolutelyperfect.

“Iwantittobefun,too.Iwantpeopletolovebeinghere—ouremployees,andourcustomers,andyou,Sol,andme.Iwanttotearouttheceilingandgostraightuptotheroofjoiststogiveussomeroomtobreathe!Iwanttotearoutthewallboardandsandblastthebrickwallsuntilthey’reabsolutelynew,brightredandwhite.Iwanttotearupthelinoleumandlaydownthinstripsofclearwhiteoak,intermixedwithbrickandflagstonepathsleadingtothegardenatthebaseofthewaterfall.

“Iwanttohavebrightgrass-greenantiquebencheslocatedthroughoutthestore,sothatifpeoplewanttotakealoadofftheirfeet,theycan.

“Iwanttheretobemusic,notMuzak,butrealmusic,alivepiano,orastringquartet,andsometimes,justforthehellofit,asmallrockband,togivetheplaceakickintheass!

“Iwanttomarketcolorfulproducts;nomoredarkblue,black,green,gray,andbrown,butbrightblue,andred,andyellow,andgreen,andproductsforcamping,hiking,fishing,hunting,alloutdoorrecreationandsports.AndIwantthemtobedisplayedcolorfully,dramatically,withbigcolorfulplastickeysgiventothecustomerswhentheywalkinthedoortouseinvideoterminalstoprovidethemwithalltheinformationthey’llneedaboutthemoredifficult-to-understandproducts,sothatthey’llneverhavetoaskanyonewhereanythingis,orwhatitdoes,orwhatthedifferenceisbetweenoneproductoranother.

“Canyouseeit,Sol?“Andthat’sonlythebeginning.Iwantthisplacetoshine!AndIwant

somethinggrand,somethingabsolutelyastonishing,somethingtotallyunexpectedandstunningsuspendedfromtheceilingbyinvisiblewiretoswoopdownonthecustomersastheywalkinthefrontdoor.Perhapsonemonthitwillbeagiantglider,oranothermontharealbiplane,or—evenbetter—howaboutanincredibletrue-to-lifemodelofanAmericanbaldeaglewitheighteen-footwingsstretchedoutoneitherside,staringdownateveryonewithitshuge,sharpyellow,eagleeyes!

“Mostofall,Sol,Iwanttochangeournameandthefaceofthebuilding,

“Mostofall,Sol,Iwanttochangeournameandthefaceofthebuilding,andIwantthesigntosoarupfromtheroofsothatnoonecanpossiblymissit.AndIwantthesigntosay

FLYINGHIGH&FIELDSTONEGREEN!”

Martyreachedbehindhim,tookoutalargebrownpaper–wrappedpackage,toreitopen,andturnedtheartboardwithinitaroundsothatSolcouldsee.

Solstaredattheillustrationandblinkedtwicebeforesaying,“But,whatdoesitmean?”

Martybegantolaugh,thentoroar,holdinghissides,tearswellingfromhiseyes.

“Itmeans,oldbuddy,thingsareabouttochange.”

Thatstoresucceeded.Infact,itexceededallofMarty’sexpectations.Solwatchedallofthisinamazement.Weissberg’sArmy-NavySurplusbecameasportinggoods/camping/mountain-climbingempire,withstoreseverywhere.

Canyouguesswhatthatchain,thatempire,iscalledtoday?No,it’snotWeissberg’s.It’snoteven

FLYINGHIGH&FIELDSTONEGREEN!

Canyouguess?You’dprobablybewrong.ButIcantellyouthis:thesixcomponentsoftheVisualMatrixallcome

togetherinperfectunisonatthisamazingenterprise.Onyournext(orfirst)visittoaStarbucks,anApplestore,aFedExoffice,or

asimilarbusiness,challengeyourselftonoticetheinterplayofthesixcomponentsoftheVisualMatrix:color,form,scale,order,detail,andinformation.

DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS

(ListentothePodcastversionatMichaelEGerber.com)

Thevisualidealisvitaltoeverybusinessineveryindustry.Theconception,creation,andmaintenanceofthevisualimpressionofabusinessiscriticaltoitssuccess.

Theproblemseemstobethatthevastmajorityofbusinessesinthiscountry—smallorlarge—simplydon’tgetit,orwhat’sworse,simplydon’tcare.Walkordrivedownjustaboutanycommercialstreetorwalkinsidejustaboutanybusinessyouchoose,andyou’llimmediatelybeaccostedbythevisualsymptomsofourentrepreneurialmalaise.Ibelieveitcouldbeproventhatavisuallydeterioratingbusinessistheactofanemotionallydeterioratingmind,ofleadershiponthevergeoffailure.

Thesixcomponentsofvisualpreferencearecolor,form,scale,order,detail,andinformation.

ColoristhefirstthingpeopleseeandisthereforeacriticalcomponentoftheVisualMatrix.

Formfollowscolorintheorderofimportance.Whatformdoesthebusinesstake—fromthelogo,tothestyleofdress,tothearchitecture,totheproducts?

Scaleisnext.Isthebusinessbuiltforpeople,orisitbuilttointimidatepeople?Doesittakeourbreathaway,ordoesitmakeuslaugh?Doesitsay(asDisneylandannouncesthemomentyouwalkthroughthegates),“Thisisgoingtobeonehellofagoodtime!”

FourthintheVisualMatrixisorder.Orderisjustwhatitsays:itisallthingsintheirplace;itiscleanliness;itisimpeccability;itisadeep,abidingsenseofcontrol;itisthemeticulousattentionpaidtothemaintenance—tothesurfaceofthings,ofsustainingthenewness,thefreshness,theessenceofthingsaswehaveenvisionedthemnew.

Fifthinimportanceisdetail.Detailisthecareoneputsintoallthelittlethingsofthebusiness,soaspeoplelookcloser,theyaresurprisedbywhattheyfind.

Andsixth,isinformation.Everybusinessmustfindavisualwaytotransmitmeaningfulinformationtoitscustomers,itsemployees,itssuppliers,anditslenders—theinformationtheyeachperceivetheyneed—inthemostvisuallycompellingwaypossible.

Forasuccessfulenterprise,“servingup”thevisualidealisnotanoption.It’sanecessity.

anecessity.

CHAPTERFIVE

THESECONDCATEGORYOFPREFERENCE:THEEMOTIONALIDEAL

ManisaropestretchedbetweentheanimalandtheSuperman—aropeoveranabyss.Adangerouscrossing,a

dangerouswayfaring,adangerouslooking-back,adangeroustremblingandhalting.

—FriedrichNietzsche,ThusSpakeZarathustra

TobecomeanE-MythEnterprise,itisessentialforabusinesstobecomeavisualproduction.Butfortheproductiontohavemeaning,fortheformtohavesubstance,thesecondcategoryofpreference,theemotionalideal,isequallyessential,lesttheproductiondegenerateintowhatmightbecalledvisualrhetoric,“fullofsoundandfury,signifyingnothing.”

Isbusinessaformofwar?ConsiderthelongconflictinIraq.Fightinginthedesert,surroundedbynothingness,amanorwomanrunsthe

riskoflosingsightofwhyheorsheisthere,excepttosurvive.Asoldier’smotivationbecomesdoublyimportant.IbelievethatU.S.officersinvolvedinanyconflictshouldmaketheefforttotakethetimetositwiththeirtroops,toexplaingoals,toknoweverysoldierpersonally,togivethemthefeelingthattheyarethebestandthattheirmissionisvital.

Leadershipisatapremiuminanywar,andwithoutit,nothingwillbeachieved.

Itmightbearguedthatthecomparisonbetweenwarandbusinessisanunreasonableone;thatwarbringswithitaspecialedge,aunifyingprinciple,thatisimpossibletosustaininanordinarybusinessengagedinmundanecommercialtransactionswherelifeanddeathisnotaday-to-dayquestion,ifaquestionatall.

Ibelievetheoppositeistrue.

Ibelievetheoppositeistrue.Ibelieveagreatbusinessbecomessotothedegreethat,likewar,itraises

seriousquestions.Itbringsusface-to-facewithourownmortality.Iftherearenoextrahumanchallenges,itcreatesthemandengageswithitsownresistancetochangethedesertofitsowndoubt.Itformsitspeopleintosquads,andcompanies,andregiments,andbattalions,anddivisionsanddetermineswheretheenemyis(itisalwayswithin),andlaunches,timeandtimeagain,intobattleafterbattle,ifonlytotakeoneyardatatime,toexperiencenotsomuchthelandthatisacquired(although,ofcourse,thereisthat),buttheextraordinaryinnerstrengththatisdeveloped,thecamaraderie,thepassionthatisshared,passedon,handedfrompersontoperson,fromhearttoheart;asenseofpurpose,ofvalue,ofbeingasfullyhumanaswecanbe,givenourlimitedunderstanding,ourlimitedskill,ourlimitedinterest.

InhisbookTheMasterGame,RobertS.deRoppsays:

Whatpeoplereallyneedanddemandfromlifeisnotwealth,comfortoresteem,butgamesworthplaying.Hewhocannotfindagameworthplayingisapttofallpreytoaccidie,definedbytheFathersoftheChurchasoneoftheDeadlySins,butnowregardedasasymptomofsickness.Accidieisaparalysisofthewill,afailureoftheappetite,aconditionofgeneralizedboredom,totaldisenchantment—“God,ohGod,howweary,stale,flatandunprofitableseemtomealltheusesofthisworld!”Suchastateofmind…isapreludetowhatislooselycalled“mentalillness,”which…fillshalfthebedsinhospitalsandmakesmultitudesofpeopleaburdentothemselves,theirfamilies,andtosociety….Seek,aboveall,foragameworthplaying.Suchistheadviceoftheoracletomodernman.Havingfoundthegame,playitwithintensity—playasifyourlifeandsanitydependedonit.(Theydodependonit.)FollowtheexampleoftheFrenchexistentialistsandflourishabannerbearingtheword“engagement.”

Thoughnothingmeansanythingandallroadsaremarked“NOEXIT,”yetmoveasifyourmovementshadsomepurpose.Iflifedoesnotseemtoofferagameworthplaying,theninventone.Foritmustbeclear,eventothemostcloudedintelligence,thatanygameisbetterthannogame.*

“Whatisagame?”deRoppasks.“Itisessentiallyatrialofstrengthbyrules.Rulesareessential.Iftheruleswerenotobserved,thegamewouldceasetobeagameatall.Ameaningfulgameofchesswouldbeimpossibleifoneplayerinsistedontreatingallpawnsasqueens.”

insistedontreatingallpawnsasqueens.”DeRoppgoesontosaythattheonlygameworthplayingiswhathecalls

“theMasterGame,”theaimofwhichis“trueawakening,fulldevelopmentofthepowerslatentinman.”

MostofthepeopleIknowarenotconfusedenough.Oh,theywouldalladmittoacertaindegreeoffrustration,doubt,alackof

certaintyastohowaparticularlyvexingproblemcouldbestbesolved.LikehowtogetJacktoshowupforworkontime.Orhowtogetthelandlordtofixtheairconditioner,which,nomatterwhat

wesayordo,blastsonatthecoldesttimeofthedayandshutsoffatthewarmest.*

But,asidefromthesepettyfrustrationsthatmanagetobollixupourdayfromtimetotime,tomywayofthinkingnoneofthatiswhatIwouldcallatrueconfusion.

Atrueconfusionmeanstotaldisorientation.MostpeopleIknowlivemomenttomoment,statetostate,voicingtheir

opinionsonjustabouteverything,and,intheprocess,confirmingtheirexistence—thecertaintyofthemselves.Wealldoit.It’samatterofhabit.Howelsewouldwegetonwithlife?

ButwhatI’msayingisthatmostofthepeopleIknowarenotconfusedenough.

Theyrarelystoptoseehowlittletheyactuallydoknow—aboutanything.Theyrarely,ifever,putthemselvesintoquestion.Theyrarely,ifever,gettothepointwheretheysuddenlyfeeltotallystupid.Indeed,theyrarely,ifever,allowthemselvestofeelstupid,becauseit’snot

onlyscarytofeelthatway,toseehowabsolutelystupidweareallconcerningjustabouteverything,butit’sdrop-deadterrifyingtocomeface-to-facewiththedark,deepabyssofhowlittleweactuallyknow,and,evenworse,withthealarming,unsettling,absolutelydevastatingfactthatmostofthetimewe’renotevenhere.

Ifweweretobehonestwitheachother,wewouldhavetoagreethatmostpeoplearelikethat.Infact,ifwereallywanttobehonestwitheachother,ifthetruthwerereallytoberevealed—youandIarelikethat.

Oh,yesweare.We’reallcertifiabledummies.What’sworse,we’reallmainlygone,absent,asleep,outtolunchmostofthe

time,habit-ridden,doinganautomaticdanceofsomeoneelse’schoosing,pushedalongfrombehind.

It’smycontentionthatifwewereworkinginagreatbusiness,someonewouldbetellingusthatallthetime.

Someonewouldberemindingusthatwe’renotconfusedenough,thatwe

Someonewouldberemindingusthatwe’renotconfusedenough,thatwehavetoomanystupidanswersandnotenoughquestionsoccupyingourminds.

Agreatbusinessmakessuretokeepeveryoneawake—itscustomers,itsemployees,itssuppliers,anditslenders.

True,it’sadifficult,oftentreacherous,pathtotake.Mostpeopledon’tliketobeconfused.Theydon’tliketobejostled;they

don’tliketofeeljarred;theydon’tliketohavesomeonesay,“Think!”asTomWatsonatIBMwasgiventodo;andtheyliketohaveopinionsabouteverythingthatgoeson.Don’twe?Don’twealllikethat,honesttoGod,deepdowninside,don’tweallliketobeauthorities?

Ontheotherhand,isn’tthereapartofus,howeversmallandtimid,thatlovestobeshaken?

Forit’sthatshocktoawaken,it’sthatcosmicraponthenoggin,it’sthatexistentialkickintheass,it’sthatprimordialshoutfromourstrugglingoldconsciencethatsays,“Wakeup!Wakeup!Wakeup!”thatliftsusoutoftheether,thatsnapsusoutofourlockstep,thatpinsustothewallofoursleepandmakesuslookatit,makesusopenoureyes,makesusbreathe,think,move,comealive!

Ihadasaxophoneteacheronce.AsImentionedearlier,hisnamewasMerle.Merlewasatyrant,atormentor.Otherthanthefactthathewasageniusat

thesaxophone,hehadnothingelsegoingforhim.Merlemusthaveweighedatleast300pounds.Hehadadrinkingproblem,

too.NotthatIeversawhimdrunk,thoughIdon’tthinkIwouldhaveknownitifhehadbeen.IwasonlynineyearsoldwhenIstartedstudyingwithhim.Butateachoneofmyhour-longSaturdaymorninglessons(therewereatleast400oftheminall:Istudiedwithhimforalmosteightyears),hedrankdownawholequartofbeer.Now,Iknowhehadotherstudentsbesidesme,aboutseveneveryday.ThatmeansthatMerledrankatleastsevenquartsofbeeradayfortheentiretimeIknewhim,andnotoncedidIseehimoutofcontrol.

(TheonlysymptomMerleeverdisplayedtomeofhispossiblealcoholproblemwasabrokenleghesufferedshortlyafterIbeganstudyingwithhim.Heworeacast,whichstayedwithhim,offandon,fortherestofhislife.Hetoldmethathe’dbeenjumpedbytwodrunksinabaronenight;oneofthemheldhim,whilethesecondproppeduphislegbetweentwochairs,andthenbeatitwithabat.Needlesstosaythelegneverhealed,anditfinallykilledhim—theleg,notthealcohol—butIdon’treallythinkitmatterswhichtoMerle.)

MerleandIhadanunderstanding.Thiswasthedeal:Merlecouldbeatthelivinghelloutofme(notliterally,

butfiguratively),andIwasfreetoquitifIdidn’tlikeit.Andheexercisedhispartofthebargainalmosteveryweek.

Andheexercisedhispartofthebargainalmosteveryweek.HewasthemostdifficultmanIhaveeverknowninmylife.Hewouldn’tallowmetogetawaywithanything.IfIletupalittleonmypracticing,heknewit.IfIplayedsomethingsloppily,orcarelessly,orthoughtlessly,hecalledme

onit,everysingletime,andmademeplayitoverandoverandoveragain,untilIgotitjustright.

Understand,toMerle,“justright”meantperfect,absolutelyright.Anditdidn’tmattertoMerleiftheentirehourwastakenupwithonesimple

phrase.That’swhatwe’ddo,thatonephrase,overandoverandoveragain,untilitfairlyflewfrommyfingersonitsown.

TogettoMerle’s,I’dtakeabusfromAnaheimtodowntownLosAngeles,thentransfertoasecondbusthatwouldtakemetoNorthHollywood,whereMerle’sstudiowas.Itwasalongtrip,upandback:atleastthreehoursofbusridingforeveryhourofsaxophonelesson.

Butitdidn’tmattertoMerlehowmanybusesItook,orhowfarIhadtocometostudywithhim,orhowyoungIwas,or,forthatmatter,howbigapainintheasshecouldbeasateacher.

NothingmatteredtoMerlebutthebargainwehadstruck:thatitwashislotinlifetoteachpeopletobecomegreatsaxophoneplayers,andthatpeoplestudiedwithhimforexactlythatreason.

AndtoMerle,anythingIdid,orfailedtodo,thatviolatedthatbargainwasgroundsforimmediate,anddrastic,action.

Ononeoccasion,onlytwominutesintothelesson,Merlecoollytoldmetopackupmysaxophoneandgobackhome.Thelessonwasover.WhenIaskedhimwhy,helookedatmeindisgust,andsaid,“Go.”

Ineverdidfindoutwhyheaskedmetogohomethatparticularday,butdeepdowninmyheartIknewthereason.

ItwasbecauseMerleknewIwasn’tworkingashardasIcould.MerleknewthatIhadalazystreakinmeamilewide.AndIknewit,too!Hewasn’tonlytellingmetogohomeearly,hewastellingmetolookat

myself,toputmyselfintoquestion,toaskmyselfwhetherornotIwasreallyseriousaboutbecomingagreatsaxophoneplayer.WasItakingmyselfasseriouslyasMerlewas?

WasIkeepingmypartofthebargain?Ihonestlycan’ttellyouwhatkeptmegoingbacktogetbeatupbyMerle

weekafterweek,monthaftermonth,yearafteryear.ButIthinkitwasthesoundofmysaxophone,asitchanged,andgrew,andmatured—asitbecamemusic.Its

depth,itsrange,itsrichness,itsdexterity,itspowerallmesmerizedme.IrememberhowIwouldstand,sometimesforhours,inthebathroomat

homewiththedoorlockedbehindmeandplaythesaxophoneagainstthetilesintheshower.

HowtakenbysurpriseIwouldsometimesbebytherich,fatsoundasitricochetedoffthetilesandthewallsandoutofthewindow,fillingmewiththemostextraordinaryfeelingofwonder,ofconnectionwithmyselfandtheworld.Howoldthatsoundseemedtobe—howalive!

WithoutMerle,itwouldn’thavehappened.Peoplewhoworkingreatcompanies—E-MythEnterprises—thinkabout

theminexactlythesamewayasIthinkaboutMerle.It’salove–haterelationship.

AnacquaintanceofminewhograduatedfromWestPoint,earnedanMBAfromWharton,andthen,asthoughthatweren’tenough,completedhissalesapprenticeshipatIBM,toldmethatnothinghehadeverdoneinhislifemeasureduptohisIBMexperience.

“ItwasthetoughestthingIhadeverdone,”hetoldmeproudly.“Withoutadoubt,noone,nothinghasevertestedmeascompletelyasIBM.Ilovedthatplace.”

AfriendofminewhoworkedintimatelywithWaltDisneysaidofhim,respectfully,“Hewasamonster.NoonewastougherthanWalt.NooneexpectedmoreofyouthanWalt.Noonerodeyouashard,squeezedouttheverylastjuice,keptdigginguntilhefoundthatverylastnugget.Oncehegotitinhismindwhathewantedtodo,Waltwouldn’tletanyonerestuntiltheyhaddoneit.”

TheysaythesameaboutRayKroc,andRossPerot,andFredSmith,andSteveJobs,andthecompaniestheycreated.Theylovedthemanandtheyhatedhim;theylovedthecompanyandtheyhatedit.

SoitseemsthatE-MythEnterprises—indeed,allcompanies—takeonthepersonalitiesofthepeoplewhocreatethem.

Andthatiswhysofewcompanieshavebeensuccessfulintheirattempttodevelopmanagersintoentrepreneurs.

It’sbecausepersonalitieslikeTomWatson’s,WaltDisney’s,RayKroc’s,RossPerot’s,andSteveJobs’saresouncontrollable.ThathadtobethereasonwhyJobswasbroughtbackasApple’sCEO.

Theyareaforcealltheirown,drivenfromwithin,unmanageable,chaotic,solitary,insatiable—possessed,youmightsay—exactlytheoppositeofwhatittakestobeagoodmanager.

Youdon’tfindpeoplelikethatworkinginotherpeople’scompaniesforlong.

long.Thatiswhythecompaniestheycreatedemandmoreoftheirpeoplethan

othercompaniesdo,becausepersonalitiesliketheirsdemandmoreofthemselvesthanotherpeopledo.

Ifmysaxophoneteacher,Merle,had,byanaccidentoffate,takenupbusinessinsteadofthesaxophoneashiscalling,I’mcertainhiscompanywouldhavemirroredtheonesI’vejustmentioned.AndthatisbecauseMerleexpectedmoreofhimselfandmoreofhisstudentsthananyonehasarighttoexpectintheordinaryworld.

Intheordinaryworld,fewpeoplehavetherighttoexpecttobecomegreatsaxophoneplayers.

InMerle’sworld,nothinglesswoulddo.Intheordinaryworld,fewpeoplehavetherighttoexpecttocreateachain

ofnearly32,000restaurants,alloperatinginanidenticalfashion,withthesamerigorousstandards.

InRayKroc’sworld,nothinglesswoulddo.Companiesliketheseoftenappearrigidfromtheoutside.That’sbecause

theylivebyrules.Walt’srules,orRay’srules,orTom’srules,orSteve’srules.Toughrules,rulesforatoughworld,whereordinarypeopleare

unaccustomedtoplaying.Despiteoutwardappearances—despitetheseemingrigidityoftheirrules—

thetrulydifficultcharacteristicofE-MythEnterprisesforordinarypeopletotake,isn’tthattheyplaybythetoughrules,butthattheyareavidbreakersoftheveryrulestheymake.

Therulesareconstantlychanging.E-MythEnterprisesarecontinuallyrewritingtheirowntraditions.Theyarecontinuallycreatinganewgametoplay.Andthatisbecausethecreatorsofthesecompaniesarecontinuallyasking

questionsabouthowtogetbetter;theyarecontinuallyrisingtotheirownexpectations;theymarchtothebeatofadifferentdrummer.Marchingtotheirowninnertuneandlivingtoameasurethatcomesfromjustaroundthecorner,outofreach,outofsight,theyarecontinuallyinastateofbreakingupandreforming,andtheydothisasamatterofbeing,asawayoflife;theycouldn’tdoitanyotherway.

Buttheirenergy,theircreativity,theirspirit,theirdrive,theirstamina—asessentialasthesetraitsare—aren’tenough.Iftheywere,therewouldbemanymoreE-MythEnterprisesthanthereare.

No,itseemsalsothatE-MythEntrepreneurspossess,toadegreethatputstherestofustoshame,thefiveessentialskillsIspokeaboutearlier.

therestofustoshame,thefiveessentialskillsIspokeaboutearlier.Theyconcentrate,discriminate,organize,innovate,andcommunicateina

waythatputsfocus,tension,order—apresence—attheheartoftheenterprisethatcausesittoalmostshimmerwithecstasyasitgoesitsunusualway.

Itisthatshimmer,thatbrightness,thatradiance—arethesewordstoostrong?—thatalmostinstantlydistinguishesanE-MythEnterprisefromalltheothers,fromtheinsideandfromtheoutside—intheheartsofthosepeoplewithwhomitcomesintocontact.

Itisthefactthatgameismoreimportanttosuchcompaniesthantherewardthatexcitespeoplesomuch.

Butthatstillisnotenough.ThereissomethingelseaboutE-MythEnterprisesthatendowthemwith

suchatangibledifference.Anditisthatthesebusinesses,theseE-MythEnterprises,arecreated,notbybusinesspeople,notbyso-calledentrepreneurs,but—andthereisnootherwaytosayit—bychildren.

TheseE-MythEnterprisesarecreatedbytheyoungestpartofus,notthemostadult.

Theyarecreatedbythatpartofusthatbelievesithastherighttoexpecttheworldtochange,togiveuseverythingwewant,exactlyasweimagineit.

Notthemethodicalpart,thedependablepart,thereliablepart,theresponsiblepart,thegrown-upinusall,thepartoneexpectsthemanagertoplay.

Nottheadultwhohaslearnedtolimithisorherexpectations,butthechildwhowantsitall.

IthinkofJohnAnderson,andIimmediatelyknowthatitwasthechildinhimwhocreatedthat1947Fordcoupe.

IthinkofMerle,andIimmediatelyknowthatitwasthechildinhimwhoexpectedsomuchtocomefrommyhorn.Attimes,Iremember,hewouldstandbesidemewithobviousimpatienceasIwasplayingmyhornandactuallystamphisfeet,that’sright,jumpupanddown,asifbystampinghisfeethecouldforcethesoundoutofmyhornthatIwasincapableofforcingoutmyself.Hesomuchwantedtohearthatsound!

Whodoesthatbutachild?NowondertherearesofewE-MythEnterprisesaround.It’sbecausebusiness,asitisordinarilyplayed,issounattractivetomost

children.Itissuchadeadandemptygame.Letmetellyouthestoryofanothergreatbusiness—anotherE-Myth

Letmetellyouthestoryofanothergreatbusiness—anotherE-MythEnterprise.

Letmegiveyouaprofoundexampleofhowtheemotionalpreferencesofpeoplehavebeensowellserved,andhowthisqualityalonehasenabledonesmallbusinesstothriveunderconditionsthatwouldputmostbusinessesunder.

LetmetellyouthestoryaboutawomannamedMaryandavocationalschoolinthefieldofmassagetherapycalledTheHolisticHealthInstitute.

ToMaryConnerBrown,settlingdownwasacolorofadifferentkind.Puttingitmildly,shehadledatraveler’slife.FromthemomentMarygraduatedfromtheUniversityofNorthCarolinawithabachelor’sinpsychology,shehittheroad,andforthenextfiveyearssherarelystoppedinanyoneplaceformorethanaminuteandahalf.

AsMaryputsit,shewasn’treallylookingforanythinginparticular,shewasjustrestless.

Shehadthisburningdesiretodosomething,tomakesomekindofamarkontheworld,tocreateanimpactthatwouldcausepeopletosay,“Marywashere.”Ittookonaphysicalform,starting,youmightsay,withherfeet—theyjustwouldn’tstop.

Shortlyaftergraduating,Maryheardabout,soughtout,andimmediatelyjoinedacommuneinVirginiacalledTwinTrees,whichwasbuiltontheprinciplesofB.F.Skinner’sWaldenTwo.There,Maryalternatelyworkedontheconstructionteamasaplumber,thekitchenteamasacook,andthechildcareteamasasurrogatemother.

Maryremembersthecommuneas“apowerfullytransformationalexperience.”

“Itwasatruematriarchy,createdbywomen,forwomen,aplacewhere,forthefirsttimeinmylife,itbecameabundantlycleartomethatIcoulddamnwelldoanythingIwantedtodo.

“HereIwasworkingasaplumber,forGod’ssake,whenjustafewmonthsbeforeIcouldn’thavetoldyouthedifferencebetweenapipewrenchandahammer!

“AtTwinTrees,myrestlessness—whatIthoughtofatthetimeasmySearch—becamefocusedlessonthequestionofwhattodowithmylife,thanonwhatdoIwanttodowithmylife?

“Therealizationthattherewasahugedifferencebetweenthosetwoquestionsopenedupawholenewworldtome.”

Itwasn’tlong,however,beforeMarydiscoveredthat,despiteitsloftyambitions,TwinTreeshadbecomeitsownsortofprison,aplacesocharismatic,soseductive,yetsooppressive,thatsheknewshehadbettergetout.

AsMarytellsit,“Itwasincredibleformetodiscoverhowpowerfulahold

AsMarytellsit,“Itwasincredibleformetodiscoverhowpowerfulaholdthecommunehadonme.Theverythingthatempoweredmethere,begantocontrolme.Itwaslikeanarcotic.SomethinginmetoldmethatifIstayedmuchlonger,Iwouldfinditdifficult,ifnotimpossible,toleave.

“TheverynextdayIliterallyescapedinavisitor’scarbyhidingonthefloorbehindthedriver’sseat!Theguywasshockedtofindmethere,butagreedtodropmeoffsixtymilesawayinVirginiaBeach.WhyIchoseVirginiaBeachisstillamysterytome;Ithinkitwastheonlyplacethatcametomind.Itamazesmetothisday.Inonlyacoupleofhoursmyentirelifehadcompletelychanged!HereIwas,atthreeo’clockonaThursdayafternoon,inastrangetown,withnoidentity,nojob,noplacetolive,only$18tomyname,andabsolutelynoideaofwhatIwasgoingtodonext.Ilovedit,andIwasscaredshitless!Itwaslikewakinguponastrangeplanet.”

ThatveryafternoonMaryrenteda$15aweekroominaboardinghoteland,withonly$3lefttohername,beganhustling“survivalmoney,”doingoddjobsonthestreetsofVirginiaBeach,wonderingwhatthenextstepinherodysseywouldbe.

ThestreetbecameanotherfirstforMary.Herresilienceandresourcefulnessweretestedoverandoveragain.Unlikehome,college,andthecommune,therewerenorulesonthestreet,

noritualtowhichMaryhadtoconform.Noonetoldherwhatshehadtodo,orthatshehadtodoanything.

Shemadeitupasshewentalong,creatingherownrules,herownaims.Everydaybecameanewopportunity,anewproblem.Ifshewasgood—or

lucky—shegotwork;ifshewasn’t,shedidn’t.Afaststudent,shequicklylearnedthedifferencebetweenthetwo.Itquickly

becameapractice.Itgavehersomethingofvaluetoteach.Shewasdevelopingherstyle.

Acompanyisonlyasaliveasitspeople.Thevitalityoftheproductofacompany,whatitsells—its“commodity”—

alwaysreflectstheemotionalvitalityofitspeople.Putmoredirectly,dumbcommoditiesarecreatedbydumbpeople.Ithinkitisalsotruethatcommoditiesmature—becomedumber—notonly

astheyoutweartheirusefulness—forexample,theirperceivedvaluetotheircustomer—butasthevitalityofthepeoplewhocreatethemwanes,disintegrates,becomeslessintense,lessjoyful.

Ontheotherhand,theemotionalvitalityofacompany’speopleisalwaysafunctionoftheemotionalvitalityofthefounder,orCEO,ofthatcompany.

AnoldSicilianexpression,“Thefishstinksfromtheheaddown,”tellsus

whereoneshouldlookforthefailureofacompanytothrive.

It’sareliableaxiomthatdeadCEOscreatedeadcompanies.CEOswhoaresatisfiedwiththemselvescreateself-satisfiedcompanies.DullCEOscreatedullcompanies.BelligerentCEOscreatebelligerentcompanies.AdventurousCEOscreateadventurouscompanies.FearfulCEOscreatefearfulcompanies.Whatgoesaroundcomesaround.

Mostcompaniesfailbecausethereissomethingmissing—somekeyandcriticalcomponentleftout.

TheCEOisadventurousbutlazy,sothedetailsdon’tgetworkedout.TheCEOispassionatebutstupid,sothereisforce,butinthewrong

direction.TheCEOisdissatisfiedwithhimselforherselfbutplacesblameonhis

orherpeopleinstead,so“thesearch”turnsintoawitchhunt.OrtheCEOisageniusbutcrazy,sotheenergyofhisorhergeniusis

transformedintoastewpotofconfusion.

Considerthis:ifyouwanttounderstandSteveJobs,looknofurtherthanApple.IfyouwanttounderstandHowardSchultz,takeagood,longlookatStarbucks.Conversely,lookatAppletounderstandJobs;lookatStarbuckstounderstandSchultz.

What’sgreatabouttheseCEOsiswhat’sgreatabouttheircompaniesandviceversa.

Thisgamewecallbusinessisadelicate,delicate,yethighlyconnectedthing.

Forthenextfouryears,MaryBrownstumbledfromoneadventuretoanother,movedmorebyinstinctthananythingelse.

Astrangeronthestreetgotherajobinabeerbar“slingingsuds.”Achanceencounterinthebarturnedintoaroommateandarelationship

aboardathirty-five-footsailboataptlynamedChanceEncounter,inwhichsheandhernewfriendsailedtotheBahamas,theVirginIslands,theFloridaKeys,andtheTortugas,workingastheywent,divingforconch,charteringout,orwhatevershowedup.

AsMarydescribesit,“Whateverhappened,happened.Somethinginmecravedexperience—newimpressions.SomehowIknewthattheonlywayIwouldgrowwasifIletgoofmypastandwalkedwillinglyintoanunknown,anunforeseeable,anuncontrollablefuture.What’smosttrueofthattimeinmylifeisthatIsimplyallowedeventstoshapeme.IwassmartenoughtoknowthatIdidn’tknowenoughtoshapeevents.It’snotthatIwasfearless,asalotofpeoplethinkwhenItellthemaboutthosetimes,butthatIsimplymaderoomformyfearandIestablishedaworkingrelationshipwithit.”

ItwasduringthatfreewheelingtimethatMary’sschoolwasborn.Whocansaywhythingshappen?Whocansaywhereanythingbegins?Butit’sinstructivetotry.It’sofvaluetolookfororigins,beginnings,wherethingsbegintogooffor

ontrack.Foritisundeniablethateverysinglething,everyevent,everycondition,hasitsbeginning—wasstarted,orwasborn,orwasignited—atsomesinglepointintime.Whetherornotweknowwhen,where,orwhy,itdidhappen,itdidstart,anditdidcometogether.

Butthemostinstructiveoriginsarenotinthepast;theyarehappeningrightnow.

Newthings,newventures,newcompanies—newlives—arecontinuallybeginning.Atthisveryinstant—inthismicrosecond,inthisflashofcontractedtime—somethingnewissettingitsfootdownonatotallynewpath,issuddenlydecided,ischartingitscourse,iscreatingafutureofwhatwillalsobecomepastandpresentevents,eachexistingontheveryedgeoffutureinstants,futurebeginnings,andfutureendings.

Itisinthemiracleofoccurrence—thislivingmoment—thateverythingbegins,thateverythingends,evenbusinesses,astheyhavebegun,andended,foralltime.

SoIthinkthatTomPeterswaswrong.

It’snotthepursuitofexcellencethatmatters,it’sthatwearepursuedbyexcellence.

It’sthatthequestionofexcellenceresidesasapossibilityineverythingwedo.

It’snotthatthegasstationiscleanthat’simportant,it’sthatsomebodywaspossessedbytheneedtocleanit.

It’sthefireattheheartoflifeitself,thisexcellence,thateitherpossessesusornot.

Anditisthisinstantthatithappens,notinthepast,notinthefuture,butattheveryinstantofchoice,now,asourbusinesses,asourverylives,arebeingshaped.

Whatconcernsme,whatshouldconcernusall,Ithink,ishowfewofusseemtobeavailable—orwilling—tobepossessed.

ItisastonishingtothinkthatMary’sbusinesswasstartedwithabookaboutmassageandahandfulofclients,bothofwhich(thebookandtheclients)weregiventoMarybyamassagetherapyfriendwhodecidedtoleavetown.

Maryreadthebookandmassagedtheclients,andthusherschoolwasborn.HowMaryBrowncameupontheideaforherschoolisn’timportant.You

couldn’treplicateitevenifyouwantedto.Thesimplematteristhatshewaspassionatelyseekingsomething,andshefoundit.

Don’tmisunderstandme,itwasn’ttheschoolshewasseeking—thebusinessneveris,notforDisney,notforKroc,notforSmith,notforPerot,notforJobs,notforMary.No,thebusinessissimplythemediumthroughwhichsuchpeoplehopetofindwhatthey’relookingfor.

ForMaryBrown,theschoolwas,andstillis,amirror—areflectionofhertrueself.

Sheseesherselfiniteverysingleday.Itisaproductofwhosheis.Itisacontinuingcommentaryonwhatshehaslearned,andonwhatshe

hasn’t.Itis—likethestreetsofVirginiaBeach—adifficultplacetogotosleep.

Severalyearsago,Mary,likealltheotherownersofvocationalschoolswithstudentaidprogramsinherstate,wasperemptorilynotifiedbythestatethattherulesforsuchschoolswereabouttobechanged.

Changed,however,istoomildawordforwhatthestatehadinmind.Whatthestatehadinmindwasarevolution.Thisrevolutionwasgoingtotakeplaceimmediately,andanyonewhodidn’t

complyimmediatelywiththestate’snewruleswouldbefoundinviolationandcouldbeputoutofbusiness.

Thestatehaddecidedtocreateanewgame,agamecalled“Trythisoneonforsize.”

Justafewexamples:Whatthestatesaidwasthatsuchschoolscouldnolongerpaytheirsales

staffcommissionsforenrollmentsuntilthestudentstheyenrolledgraduatedfromschool,forcingschoolstocreateatotallynewcompensationsystemfor

fromschool,forcingschoolstocreateatotallynewcompensationsystemfortheirsalespeople(atgreatadditionalexpensetotheschool)andtaketheriskoflosingalltheirsalesstaffatthesametime.

Thestatedidn’tcare.Whatthestatesaidwasthatanystudentonfinancialaidhadtherighttodrop

outofschoolatanytimeandreceiveafullproratarefundofhisorherunearnedtuition,forcingschoolstorethinktheirentirefinancialstrategy,theircapitalrequirements,theirfinancialaidprograms—withoutanydatatosupporttheirconclusions.

Thestatedidn’tcare.Whatthestatesaidwasthattheschoolhadtoguaranteethatatleast70

percentofitsgraduatingstudentswouldbefullyemployedinthefieldforwhichtheyweretrainedwithinsixmonthsofgraduating,ortheschoolwouldbeindefault.

Canyouimaginewhatwouldhappentostateuniversitiesandcollegesifthesamerulesappliedtothem?Thatallpsychologystudentswhohadreceivedfinancialaidhadtobeemployedaspsychologistswithinsixmonthsofgraduation;thatallmusicstudentswhohadreceivedfinancialaidhadtobeemployedasmusicianswithinsixmonthsofgraduation;thatallteachingstudentswhohadreceivedfinancialaidhadtobeemployedasteacherswithinsixmonthsofgraduation,andthatallengineeringstudentswhohadreceivedfinancialaidhadtobeemployedasengineerswithinsixmonthsofgraduation?

Doyousupposestateschoolscouldsurviveunderthoserules?Couldyourbusiness?Whatifthestaterequiredyoutoguaranteeyourproductorservice?Whatifthestatedemandedthatyouprovideyourpeoplewitha

guaranteeofsuccesswhenyouhirethem?Whatifthestatetoldyouhowmuchcapitalyourbusinessneededto

haveinrelationshiptoyourrevenueinorderforyoutobepermittedtostayinbusiness?

Whatifthestatetoldyouwhatyournetprofitneededtobeinorderforyoutobepermittedtostayinbusiness?

Whatifthestatetoldyouwhatyoucouldsay,andwhatyoucouldn’tsay,toyourcustomersinyourmarketingprocessinorderforyoutobepermittedtostayinbusiness?

Well,thestatesaidthesethings,andmuchmore,tothevocationalschoolsdoingbusinessthere.Butwhatthestatedidn’tsaywashowitcametothese

doingbusinessthere.Butwhatthestatedidn’tsaywashowitcametothesebrilliantconclusions.

Instead,whatthestatedidwastoshovedozensofsmallvocationalschoolstotheverybrinkoffinancialdisasterandputmanyothersoutofbusiness.

Asyoumightimagine,mostoftheschools,smallandlarge,weresimplyunpreparedandthereforeunabletocomply.

Butontheverydaywhenallschoolswereexpectedtobeincompliance,withonlytwoweeks’notice,Mary’sschoolhadfulfilledeverysinglerequirementimposedonit.

Shehaddonetheimpossibleinrecordtime.Marywasabletoaccomplishtheimpossibleinrecordtimebecauseher

schoolpossessedsomethingfewbusinessespossess:thepeoplewhoworkedforher,boughtfromher,soldtoher,andloanedhermoneylovedherandtheschoolshehadcreated.

Theythoughtshewasincredible,and,thesimpletruthofitis,theywereright.

Maryhadcreatedawonderoutofnothing.Herschoolwasstartedinasmall,shabbyhousewithsixstudents,nocapital,

andabsolutelynobusinessexperienceofanykind.Butsheknewaboutpeopleandwhatittooktosurviveonthestreets.

Moreimportantly,sheknewthatshewantedtoteachherstudentsmorethanaskill.Shewantedtoteachthemwhatshehadlearned,andshewantedtoteachthemwhatshehadn’t.

Shewantedtoteachpeoplethatitwaspossibletohaveworktheyloveandtohaveitontheirownterms.

Butshealsowantedtoteachpeoplewhatittakestomakeitontheirown—tobecomeindependentofthesystem,togrow,andexpand,andthrive,asshehad,totakerisks,asshehad,totestthemselves,asshehad—withoutanycertainty,oranyguaranteewhatsoeverthattheendwouldjustifythemeans.

Marywasafirewithherconvictionsandabsolutelyinspiredbywhatshehadtodo.

Andwhatshewasabouttodowaslearn.

TherearesevenrulesMarylearnedaboutbuildinganemotionallyvitalbusiness.

ThefirstruleMarylearnedisthatpeopleneedorder.Theyneedtoknowthatthereisastructure,alogic,afoundation,aclearsetofstandards,of

principles,afairnessaboutthebusinessandthejobtheyaretheretodo.

ThesecondruleMarylearnedisthatpeopleneedtofeelheard.Theyneedtoknowthattheircontributionisimportant,thatnomatterwheretheystandinrelationshiptothebusiness—asemployee,ascustomer,assupplier,aslender—whattheywantmatters,andthatthereisachannelthroughwhichtheycanexpresswhatmatterstothem,andthatthechannelisalwaysopen.

ThethirdruleMarylearnedisthatpeopleneedtofeelconnectedtosomethingbiggerthanthemselves.Ifthebusinesshassmallaims,issimplyinterestedinsurviving,instayinginbusiness,itwillnotsustainthem,itwillnottouchthem,itwillnotengagethem.No,thebusinesshastotakeonsomething—nomatterwhatkindofabusinessitis—inanimportantway.Ithastobewillingtotiltatwindmills—thebigger,thebetter.

Peoplearedyingforwantofsomethinglargerthanlifetobelievein,torallyaround,tosupport.Couldthatbewhyyoungmenandwomenvolunteertoserveinthearmedforces,evenintimesofwarorunrest?

ThefourthruleMarylearnedisthatpeopleneedtohaveapurpose.Theyneedtohaveaplan.Theyneedtobegoingsomeplace—someplacespecific,inaspecificamountoftime.Withoutapurpose,peoplebegintowallow.Theybecomesuspendedintime.Theybecomeadragoneachother,begintofeelvictimized,losetrackofthetime,gotomoviesandforgetwhatthey’veseen.

ThefifthruleMarylearnedisthatpeopleneedtofeelthatwhattheyaredoinghasmoralweight.Thebusinesshastobeconcernedaboutwhatisright:whatisrightforthemselves,whatisrightforothers,andwhatisrightfortheworld.Thebusinesshastooperatewithconscience.Withoutconscience,abusinessisadragonwhatlittleself-esteempeoplealreadypossess.

ThesixthruleMarylearnedisthatpeopleneedtofeelthatwhattheypersonallydoisimportant.Theyneedtofeelthattheenterprise,withoutthem,somehowwouldn’tmatterasmuch;thatwhentheywalkinthedoor,somethingvitalisaddedtothebusiness,somethingonlytheycanbringtothetable.Theyneedtofeelthatiftheywerenolongerthere,thebusinesswouldn’tbethesame.

TheseventhruleMarylearnedabouttheemotionalhealthofabusinessisthatpeopleneedtofeelthatthepeopletheyassociatewithlovethem.That,nomatterwhat,peoplecare.

ThewordsastudentofMaryBrown’swroteexpressitall:

MaryC.Brown,whatalady!Shebeatsmybrainoutdaily.She’srough,she’stough,Butsheknowsherstuff.(Andshecancharmthesocksoffababy!)Iloveyou,MaryC.Brown!

DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS

(ListentothePodcastversionatMichaelEGerber.com)

Thesecondcategoryofpreferenceistheemotionalideal.Therearesevenrulesthatwillhelpyoubuildanemotionallyvitalenterprise.

1.Peopleneedorder.Theyneedtoknowthatthereisastructure,alogic,afoundation,aclearsetofstandards,ofprinciples,afairnessaboutthebusinessandthejobtheyaretheretodo.

2.Peopleneedtofeelheard.Theyneedtoknowthattheircontributionisimportant,thatnomatterwheretheystandinrelationshiptothebusiness—asemployees,ascustomers,assuppliers,aslenders—whattheywantmatters,thatthereisachannelthroughwhichtheycanexpresswhatmatterstothem,andthatthechannelisalwaysopen.

3.Peopleneedtofeelconnectedtosomethingbiggerthanthemselves.Ifthebusinesshassmallaims,issimplyinterestedinsurviving,instayinginbusiness,itwillnotsustainthem,itwillnottouchthem,itwillnotengagethem.No,thebusinesshastotakeonsomething—nomatterwhatkindofabusinessitis—inanimportantway.

4.Peopleneedtohaveapurpose.Theyneedtohaveaplan.Theyneedtobegoingsomeplace—someplacespecific,inaspecificamountoftime.Withoutapurpose,peoplebegintowallow.Theybecomesuspendedintime.Theybecomeadragoneachother,begintofeelvictimized,andlosetrackofthetime.

5.Peopleneedtofeelthatwhattheyaredoinghasmoralweight.Thebusinesshastobeconcernedaboutwhatisright:whatisrightforthemselves,whatisrightforothers,andwhatisrightfortheworld.Thebusinesshastooperatewithconscience.Withoutconscience,abusinessisadragonwhatlittleself-esteempeoplealreadypossess.

6.Peopleneedtofeelthatwhattheypersonallydoisimportant.Theyneedtofeelthattheenterprise,withoutthem,somehowwouldn’tmatterasmuch;thatwhentheywalkinthedoor,somethingvitalisaddedtothebusiness,somethingonly

theycanbringtothetable.Theyneedtofeelthatiftheywerenolongerthere,thebusinesswouldn’tbethesame.

7.Peopleneedtofeelthatthepeopletheyassociatewithlovethem.That,nomatterwhat,peoplecare.Someofyoumightarguethattheemotionalidealisnotasimportantasgreatproducts,greatservices,andcompetentmanagement.Trustme,itisatleastasimportant.

CHAPTERSIX

THETHIRDCATEGORYOFPREFERENCE:THEFUNCTIONALIDEAL

I’venoticedthatpeoplewhohaveneverworkedwithsteelhavetroubleseeingthis…thatthemotorcycleisprimarilya

mentalphenomenon.

—RobertM.Pirsig,ZenandtheArtofMotorcycleMaintenance

Thatacompanylooksgreatandfeelsgreatisstillinsufficientforacompanytoactgreat.Foracompanytoactgreat,itmustthinkinasignificantlydifferentwayaboutwhatitdoesandhowitdoesitthanmostcompaniesarepreparedtodo.Thatisbecausemostcompaniesarepeople-orientedratherthanprocess-oriented.

People-orientedcompaniesfocustheirattentiononwhoisdoingthework.Process-orientedcompaniesfocustheirattentiononwhethertherightwork

isbeingdone,andmoreimportantly,iftherightworkisbeingdone,howitisbeingdone.

People-orientedcompaniesdependon“good”peopletoproduceresults,wheregoodisdefinedasexperienced,successful,self-motivated—inshort,peoplewhocanbedependedupontoproducegoodresults.Someoneisalwaysshouting,“Findmesomeonewhoknowshowtogetthejobdone!”inapeople-orientedcompany.

Process-orientedcompaniesdependongoodprocessestoproduceresults,wheregoodisdefinedastheprocess’sabilitytoproducetheverybestresultsinthehandsofinexperienced(orlessexperienced)peoplethanthecompetitionneedstoproducethesameresults.

It’svaluabletonotethatmostofthepeople-orientedcompaniesIhaveknown(andIhaveknownthousandsofthem)arealmostalwaysintolerablyself-righteousabouttheirgreatpeopleorientation(“We’reapeoplecompany!”),

righteousabouttheirgreatpeopleorientation(“We’reapeoplecompany!”),wheninfacttheyareusuallyfarlesspeople-orientedthantheywouldhaveusbelieve.

Whensomethinggoeswronginapeople-orientedbusiness,someoneinvariablyasksthequestion“What’swrongwithJack?”

(It’sasinequanonthatinpeople-orientedcompanies,somebody’salwayslettingthecompanydown.Ifthedefinitionofgoodpeopleispeoplewhoproducegoodresults,logicwouldtellusthatwhenpeoplefailtoproducegoodresults,they’renotgoodpeople.Notacheerypositiontobein.)

Whensomethinggoeswronginatrueprocess-orientedcompany,thequestionthatinvariablyisaskedfirstis“What’swrongwiththeprocess?”

(“Jack”isn’ttheproblem;theprocessis.)Onemightargue,“Ah,yes,butwhocreatestheprocessinthefirstplacebut

‘good’people?”AndIwouldrespond,“Peopleusingaprocess!”Apeople-orientedcompany’sstrategyisalmostalwaysdifferentthana

process-orientedcompany’sstrategy.Apeople-orientedcompanyfirstlooksforthebestpersonforthejob—

somebodywhoalreadyknowshowtodoit,hasdoneitverysuccessfullyinthepast,andisself-motivatedtodoit.

Shouldsuchapersonbefound,thepeople-orientedcompanywillmostoftenprovidethenewpersonwithan“orientation,”ageneralizedreviewofhousekeepingprinciples—“Thisiswhereyougetthegrease;thisiswherewekeepthepencils;thisiswhereyoucanbuysomecoffee;thisisFred;thisisJocko;thisisMyrtle”—thenleavesthenewpersontogetonwithwhatthecompanyhiredhimorhertodo,tofindhisorherownway,todothejobthebestwayheorshecan.

Failingtofindthebestperson,apeople-orientedcompanywillresorttoteachingas“good”apersonasitcanfindtheskillsneededtoperformeffectivelyonthejob,thenshowhimorherwherethegreaseis,wherethepencilsare,whereheorshecanbuysomecoffee,thisisFred,thisisJocko,thisisMyrtle,andfinallygivethenewperson“theroom”todecidehowheorshepreferstodothejob.

(Skillsmustbedifferentiatedherefromprocess,inthatskills,astheyarecommonlytaughtinpeople-orientedcompanies,arethosebasicabilitiesusedbyallcompaniesofthesamecategory—forexample,allautorepairshops,orallpoodle-clippingshops,orallinsurancecompanies—togetthejobdoneinanundifferentiatedway.Process-orientedcompanies,incontrast,designprocessesthatareuniquetotheircompanysoastogetthejobdoneinawaythatpreferentiallydifferentiatesthatcompanyfromitscompetitors—faster,smoother,lessexpensive,withauniqueflourish.)

smoother,lessexpensive,withauniqueflourish.)Process-orientedcompaniesknowthatthediscoveryofabetterwaytodo

somethingissignificantlymoreempoweringthanfindingabetterpersontodoit.Process-orientedcompaniesknowthatyoucanalwayslosethebetterperson

(indeed,inthisdayandage,youalwaysdo!),butthatit’smuchmoredifficulttoloseabetterprocess.(Peoplearen’ttheexclusivepropertyofyourcompany,butyourprocessescanbe.)

Inshort,process-orientedcompaniesknowthatabetterprocesscanbeliberatinginthatithasthepowerofturningordinarypeopleintoextraordinarypeople.(Thebestpeoplecanbealimitingfactor,inthattherearesofewofthem,youhavetopayapremiumtogetthem.Onceyoudogetthem,theycanholdyouforransomiftheydecidethey’reboredwiththepresentarrangement.Orifit’sjustnotquiterighttoday.Oriftheyneedavacationyouhadn’tplannedfor.Orforanyreason—oftheirs—atall.Thentrytoreplacethem.)

Now,Iknowthatifyou’rewhatwouldbecategorizedonthejobasa“bestperson”thiswholeconceptmayoffendyou,andIapologizefortheoffense,butthegoodnewsisthatagreatprocessinthehandsofagreatpersonisawondertobehold.

WitnessHamletandLaurenceOlivier.WitnessBeethoven’sFifthSymphonyandLeonardBernstein.WitnessEricClaptonandawell-tunedguitar.WitnessBrettFavre,orTomBrady,orPeytonManningandafootball.Witnessastaratanything,andyou’llunderstandwhatImean.

Everygreatpersonusesagreatprocess.Thequestionhereis,whoownstheprocess?Foraprocesstobeliberating,itmustliberateeveryone—theemployees,the

customers,thesuppliers,andthelenders.Suchprocess-orientedcompaniesasSupercuts,LensCrafters,PizzaHut,

Subway—and,ofcourse,McDonald’s,theWaltDisneyCompany,Apple,andFedEx—andmany,manymore,allproduceliberatingresultsfortheiremployees,theircustomers,theirsuppliers,andtheirlenders.

Theprocessassuresallofthemameasureofpredictabilitythatfewbusinessesproduceforanyone,letaloneforallfour.

Supercutspossessesaprocessforcuttinghairthatenablesabeginnertoproduceaprofessionalresultinshortorderathalfthepriceaprofessionalmustcharge.

LensCrafterspossessesaprocessforcreatingqualityeyeglasses“inaboutan

LensCrafterspossessesaprocessforcreatingqualityeyeglasses“inaboutanhour”forpeoplewhosimplycan’t,ordon’twantto,waitanylonger.

FedExpossessesaprocessthatvirtuallyguaranteessatisfiedcustomerswithitsamazingrecordofreliabilityanditswillingnesstomakethedelivery,nomatterwhat.

Alldifferentiatethemselvesnotbythepeoplewhoworkforthem,butbytheprocessthroughwhichthesepeopleproduceapredictableresulteachandeverytime.

Andbecausetheypossessaprocessthatworks,theirpeopleareperceivedtoworkbetterthanmost.

Thinkaboutitthisway:thereisawaytodoeverything.Andifthatistrue,thentheremustbeabetterwaytodoeverything.Andifthatistrue,thentheremustbeabestwaytodoeverything.Nottheonlyway,mindyou,notabsolutelyandforeverthebestway.Butthe

relativelybestway,thewaythatproducesthebestresultsasperceivedbythepeoplewithwhomitinteracts,thewaythatperformsbestinrelationshiptoalltheotheroptionsavailableatthistimeandfortheforeseeablefuture.

Thatiswhatprocess-orientedcompaniesareallabout,discoveringthebestway.

Butwheretheystartisnotwithhowtodoit,butwiththequestion“Whatisthebestthingtodo?”

Andthequestion“Whatisthebestthingtodo?”canonlybeansweredbyunderstandingwhatpeoplewantmost.

Abestwayprocessisdiscoveredbyansweringthefollowingquestions:

Whatonethingwouldourcustomers,employees,suppliers,andlendersmostlikeustodoforthemthatweandourcompetitorscan’tcurrentlydo?

Hasanyoneevertriedtodothisthing?Ifyes,whydidtheyfail?Whatwoulditmeantousifwecoulddoit?Whycan’twedoit?Whatwouldbethebestwaytodoit?Howmuchwoulditcostustobeabletodoitthebestway?Isitworththecost?Ifyes,whatwouldbetheimpactonourcustomers,employees,

suppliers,andlenders?Ifnegativeforanyorall,howwouldweovercomethatnegative?Ifwecan’tovercomethenegative,dothebenefitsoutweighthenegative

aspects?

aspects?Ifwecan,shouldwedoit?

Thebestwayisalwaysthewaythateliminatestheprimaryfrustrationexperiencedbyanyoneofthefourprimaryinfluencersofabusiness.

Whatistheprimaryfrustration?

Justwhatyoumightthink.

Theprimaryfrustrationisthenegativeexperiencemostcommonlycomplainedaboutconcerningsomeone’sinteractionwithabusiness.

It’snotdifficulttofindoutwhattheprimaryfrustrationis.Forexample,askahundredpeoplewhohavedonebusinesswithabuilding

contractoraboutthetransaction,andatleastseventy-fivewillsay,“Thejobwasn’tcompletedwhentheysaiditwouldbe;therewasalwaysanexcuse.”

Askahundredpeoplewhohavehadtheirautorepairedaboutthetransaction,andatleasteightywillsay,“Ifelttotallyoutofcontrol,andtheymakemefeelworse.”

Askahundredpeoplewhohavebeentoadoctoraboutthetransaction,andatleastninetywillsay,“Iwaitedtoolongtoseethedoctor!”

Stereotypes?True.Butitisinthesestereotypicalresponsesthatonefindstheprimaryfrustrationandthebestway.

Whatwouldhappentothegeneralcontractorwhosays,“AtHeartfeltConstruction,wearealwaysontime,onprice,anddeliveraspotlessperformance—orwepayforit!Guaranteed!”

Whatwouldhappentotheautorepairshopthatsays,“Whensomethinggoeswrongwithyourcar,theonethingyoudon’tneedismoreworry.AtHearthstoneAuto,you’llalwayshaveagoodexperience—orthejobisonus.Guaranteed!”

Whatwouldhappentothemedicalofficethatsays,“AtSweetWaterMedicalOffice,wealwayskeepourappointmentsontime—orwepayforthevisit.Guaranteed!”

Whatwouldhappeniftheyactuallydidthesethings?Iftheyactuallypulledoffthoseguarantees?Iftheyeliminated,onceandforall,theprimaryfrustrationnormally

experiencedbymostpeoplewhointeractwiththeirkindsofbusinessesdayafterday?

Iftheyweretosettheirattentiononituntiltheirbusinessesbecamemasters

Iftheyweretosettheirattentiononituntiltheirbusinessesbecamemastersatperformingtheimpossible?

Wouldn’tthatmakeadifferencetothepeoplewhobuyfromthem,thepeoplewhoworkforthem,thepeoplewhoselltothem,andthepeoplewholendtothem?

Wouldn’tthathaveapositiveimpactoneveryoneinvolved?Wouldn’tthatsettheirbusinessapart?Isn’tthatobvious?Well,that’swhatprocess-orientedcompaniesareallabout:inventingan

unobviouswaytodotheobvious,everysingletime.

Tomakeapromise—andtoacceptfullresponsibilityforthedeliveryofthatpromise—requirescontrol,thekindofcontrolthatonlyaprocess-oriented

companycanhopetoexercise.

Letmetellyouaboutjustsuchacompany,SantosConstruction,asmallbusinessthatdeterminedwhattheprimaryfrustrationoftheircustomerswasanddecidedtodosomethingboldaboutit.

MarinoSantosusedtowearblacktoworkeveryday,exceptforabrightredscarfheworeasasweatbandthatalsoservedtotiebackhiscrow-blackhair.

MarinoSantoslovedthecolorblack.Tohim,blacksignifiedmastery,singlenessofpurpose,seriousness,andalsodanger.BlackwasthecolorbywhichMarinoSantosmarkedthebarriersthatdistinguishedhim,andthereforeseparatedhim,fromtherestoftheworld.BlackwarnedtheworldthatMarinoSantoswasaseriousfellow,nottobefooledwith.Blackwashisshield.

Ontheotherhand,redwasthecolorofMarinoSantos’sheart.HisbrightredscarfsignifiedtoMarinoSantosthepassionofhisinterest.It

wasthehot,restlessflameatthecenterofhislife,theintensefirethatburnedinsidehim,insidetheblackcontainer,thecoldshieldofhisdistance.

Whilehisblackclothessaid,“Istandalone,”hisredscarfsaid,“I’mabouttoexplode!”

Andexplodehedid,everydayatwork.Itwasinthenatureoftheworkthathedid.

MarinoSantoswaswhatiscalledintheconstructiontradeaframer.HeandhissmallcrewsubcontractedtheframingofhomesinSouthernCalifornia,Arizona,Nevada,Colorado—wherevertheworkwas.

Tothegeneralcontractorswhohiredthem,theyweresimplyknownasSantos’screw.Insidethesmallcompany,however—morelikeasmallbandof

menthananactualbusiness—theythoughtofthemselvesaslosapasionadossinigual—“theonlyones.”

EveryoneinthetradeknewSantos’screw.Amongtheirpeers,MarinoSantosandhisbandwerethestuffoffolklore.Itwasnotonlythattheywerethebestatwhattheydid—andtherewasnodoubtinanyone’smindthattheywere—buttherewasthemystique,themachismo,thataccompaniedthemeverywheretheywent.

Likethestarstheywere,Santos’screwremainedaloof.Atbreaks,theywouldgathertogether,seatedinasmall,tightcircleonaconcreteslabfacingeachotherwhiletheyquietlydranktheircoffee,atetheirburritos,andwhisperedamongthemselves—startalk,nooneknewaboutwhat.

ButwhenMarinoSantosandhiscrewwenttowork,therewasnothingquietaboutthematall.Theirframinghammersfairlyflew!Wallswentupinrecordtime—firstonehouse,thenanother,emergingasthoughmiraculouslyfromtheconcreteslabs.Youcouldliterallywatchthehousesgrow,theywentupsofast.MarinoSantoswasinthemiddleofitall,hismusculararmwithitsshiningbluesteelhammer,asifgrowingoutofhishand,whalingawayatthewood,thwack,thwack,thwack;hisstrongmelodicvoiceleadingthesongs,callingoutnames,swearingatthesky.

Andtheydidittomusic!ForMarinoSantos’screw,everydayonthejobwasaperformance,adance,aphysicalandvisualcrusade.Losapasionadossinigual—“theonlyones.”Itwaswhattheydid.Itwastheirsignature.Itwaswhattheywereknownfor.Itwaswhattheylivedtodo.Itwaswhotheywere.

Then,earlyoneWednesdaymorninginthemiddleofJuly,onthewaytoajobinBarstow,MarinoSantos’spickupblewatireandflewofftheroadatninetymilesanhourandturnedoverfivetimesuntilitfinallycametorestupsidedownagainstaboulder.Forthirteenhours,MarinoSantoslaytrappedinhistruckwithabrokenbackbeforehewasfinallydiscoveredbytheHighwayPatrol.

Thathesurvivedtheaccidentwasamiracle.Buthewasoutoftheframingbusinessforgood.Whatdoesaframerdowhenhecan’tframeanymore,especiallywhenhe’sa

manlikeMarinoSantos?Whatdoesastardowhentheverythingatwhichheexcelsissuddenly

takenawayfromhim?Whatdoesamanwhouseshisbodyforalivingdowhenhisbodycanno

longerperform?Whatdoesacompanydowhenithasbuiltitsabilitytoperformontheskills

ofahandfulofgoodpeopleandthey’resuddenlygone?Forthefirstsixmonthsorso,MarinoSantosdidlittleornothingbutdrink.

Forthefirstsixmonthsorso,MarinoSantosdidlittleornothingbutdrink.Hewokeupinthemorninganddrank,andhedidn’tstopuntilhepassedoutatnight.

Attimeshewouldgetsofuriouswithhisconditionthathewouldheaveanemptywhiskeybottlethroughtheclosedbedroomwindowandintothestreet,thensitthereinhiswheelchairamidtheshardsofbrokenglass,screamingintothenightatanyonewhowouldlisten.Thepolicewouldcomeby,buttheywouldn’tdoanythingotherthanthreatentotakehimin.

Hiscrewcametovisithimeveryday.Theyhatedtoseehimlikehewas.Theycalledhimnames.Theycriedwithhim.Theysatsilentlybyandsaidnothing.Theythreatenedthattheywouldn’tcomebackanymore.Theyplayedmusicanddrankwithhim.Theydidwhatevertheycouldforbothhimandthemselves—sometimesjusttobetherewasenough.

Andthen,assuddenlyasitbegan,itwasover.Onedayheseemedjustasbad,andthenextdayhewasbetter.Hecalledhiscrewtogether.“Iwanttoapologizetoallofyou,”hesaid.“Notforthepastsixmonths,notforthedrinking—Icouldn’thelpthat.“Iwanttoapologizefortheframing,forthearrogance,forthebeliefIhadin

mybody,forbeingsostupid.“Idon’twanttobestupidanymore,”MarinoSantossaid.“It’stimetostartanewbusiness.”MarinoSantosdidn’tcarewhathisnewbusinesswas,althoughheknewit

wouldhavesomethingtodowithconstruction.Constructionwasinhisblood.Helovedthesmellofrawwood.Helovedseeingthingsstartfromnothingandbecomesomethingalmostovernight.Helovedthephysicalimpactithadontheworld.Itwasamarkofhishavingbeenthere.Itwassomethingyoucouldtouchandlookatforyearsafter.

Yes,ithadtobeconstruction,butotherthanthatitdidn’tmatterwhatkindofconstructionitwas.

Exceptforthis:theconstructionhisnewbusinessdidwasgoingtohaveasprofoundanimpactonthepeoplearoundhimashisoldbusinessdid,exceptthatthenewbusinesswouldnotdependonhis,orhiscrew’s,physicalskills.Thebusinesswouldworkwithoutthem.

Atfirsthismendidn’tunderstand.Theyhadalwaysworkedwiththeirbodies.Theyhadalwaystakenprideintheirextraordinaryphysicalskill.Nottoworklikethatanymoredidn’tmakesense.Theirjoywastoexpressthemselvesphysically,tomoveontheconcreteslab,toraisewalls,towalktherafters.Tothinkofnotdoingthesethingsanymorecreatedgreatsadnessinallofthem.

ButbecausetheycaredforandrespectedMarinoSantossomuch,they

ButbecausetheycaredforandrespectedMarinoSantossomuch,theylistened.Andgradually,itcametothemthatwhatMarinoSantoswastalkingaboutwouldn’tdeprivethemofanything,butwouldgivethemsomethingtheyhadneverhad.

Inoneoftheirmanyconversationstogether,MarinoSantossaid,“Ihavethoughtaboutthisagooddeal.Itcomesdowntothis:eitherweworkforaliving,likeburros,untilwecan’tworkanymore(hespreadhisarmsasiftosay,“Iamtheproof”),orwefindawaytobuildabusinessthatworksforus.Wethinkaboutthisbusiness,weputourmindstoit;weshapeitsothatitworkslikewehavelearnedtowork,withprecision,withjoy,withenergy.Butwemustfindawaytodothiswithoutpeoplelikeus,peoplelikeuswhotakeprideinbeingseparatefromtheworld,peoplelikeuswhoneedtobealone.Peoplelikeuswilleventuallykillourbusiness,asIhavealmostkilledourbusiness.No,wemustbuildabusinessthatcanmakeiteasyforpeoplewhoarenotlikeus,andwhowillneverbelikeus,toactlikeus.Itisourfiercepridethatmakesussogood.Wemustlearnhowtogivethisfiercepridetopeoplewhodonotpossessitnaturally.Wemustmakeitpossibleforeveryonewhoworksinourbusinesstobecomeasgoodasweareaslongastheyworkinourbusiness.Thatwillbeourgifttothem.Wemustfindawaytodothis.

“Ourbusinesswillgivethemsomethingtheycan’tgetelsewhereintheworld.And,asaresultofthat,theywillstay,andourbusinesswillflourish.Thatwillbetheirgifttous.Thosewhoarelikeus,however,theotherlosapasionadossinigualintheworld,mustdowhattheymustdo.Thereisnothingwecandoforthem.”

Asalways,oncetheymadetheirmindup,MarinoSantosandhiscrewtooktheirpathseriously.

InaccordancewithMarinoSantos’sinstructions,eachmantookitashispersonalmissiontofindworkinsomesegmentoftheconstructionindustrythatwasnewtohim.

Theysegmentedtheindustryintonewconstructionandreconstruction,andintocommercialandresidential.Theythenbrokeeachsegmentintoparts,tofindoutwhichsegmentandwhichpartofthatsegmentwasmostpromisingasabusinessopportunity.

MarinoSantostoldthemthattimewasnotimportant.Whatwasimportantwasmakingcertainoftheirultimateselection—thatitbethesinglesegmentoftheconstructionindustrythatcouldprovidethemwiththegreatestopportunitytoachievetheirobjective.

Ithadtobeasegmentoftheindustrythathadaconsistentgrowthpattern,didnotexperiencesharpup-and-downswingsbecauseoftheeconomy,was

relativelycompartmentalized—thatis,repeatedthesametasksmuchthesamewayfromjobtojob—wasn’tcapitalintensivetoeitherstartormaintain,andcouldbeoperatedindependentlyofothercontractors—thatis,couldsecure,start,andcompleteacontractwithouthavingtodependonsubcontractorsorgeneralcontractorstodotheirpartsofthejob.

MarinoSantos’skitchenservedastheiroperationscenter.Everynightafterwork,themenreportedtheirfindingsoveracoldbeer.Therewereheatedarguments.Eachmancametoconclusionsthatothers

refuted.Butgradually,asthemenbecamesmarterabouttheirmission,moreintelligentabouttheirconclusions,andmoreeloquentinthepositionseachtook,theirargumentsbecamelessheated,thoughnolessintense.

MarinoSantos’sstrategywassimple:asoneindustrysegmentafteranotherwasexcludedasanoption,themenwhowereemployedinthosesegmentswouldleavethemtofindworkintheremainingsegments,untilfinallytheywouldallbeworkinginthesameindustrysegment—thesegmentofchoice—butforcompetingcontractors.

Andthat’sexactlywhathappened.Aftertwoandahalfyearsofdedicatedwork,research,andplanning,Marino

Santosandhismenfoundthemselvesdecided.Itwassuchasimple,uncomplicateddecisionwhentheyfinallycametoit.Theywouldgointothekitchenremodelingbusiness.AndtheywouldcallitThreeDayKitchens.Onthefaceofit,thereissomethingsoordinaryaboutbusiness.Somethingsounimportant,sotrivial.ForMarinoSantosandhismentoapplythemselvessodeterminedly,to

expendsomucheffortandtimetotheordinarytaskofdecidingwhatbusinesstogointo,tospendallthatenergymerelytostartakitchenremodelingbusiness,wheninsteadtheycouldhavedone…what?

WhatalsowouldamanlikeMarinoSantosdo?JointhePeaceCorps?GraduatefromMITorStanford?Enteramonastery?TryoutfortheOlympics?Writeabook?

Whatbettercouldanyofusdothanhe?Howmanypeopledoyouknowwhohaveexpendedasmucheffort,

intelligence,care,orattentionontheselectionofapath?Howmanypeopledoyouknowwhohavetakensuchapassionateinterestin

everysinglethingtheydo?Howmanypeopledoyouknowwhocouldremembertheiraimforaslong

astwoandahalfyearswithonlytheirowninteresttoremindthemofit,whocouldbringtheenergyandattentionofagroupofstrong-willedpeopletobear

downonaproblemthathadnoendinsight,andstillmaintainthatenergyandattentionaswellasMarinoSantosdid,andwhocouldkeepthatattentionfromwavering,fromgettinglostamongthedailyconcernsthatplagueusall,andcertainlymusthaveplaguedhim?

Whodoyouknowwhopossessessuchforceofpurpose,suchimpeccablewill?

Whatdifferencedoesitmakewhatthebusinessis,afterall?Orthatitisabusiness?Thesemen—theseapasionadossinigual—couldhavebeenclimbingthe

Himalayas,anditwouldn’thaveaddedonethingtotheirjourney.Infact,itwasatleasttwomoreyearsbeforeMarinoSantosandhismen

completedtheirfirstkitchenforpay.Theyinstalledhundredsofkitchensforpractice.Everyconceivableproblemwasfaced,agonizedover,dealtwith,andovercome.

TheyworkedatnightandonweekendsinawarehouseMarinoSantosrented,inwhichtheyconstructeddozensofpracticekitchensites.Everykitchenproblemhismenfacedduringtheirdayonthejobwasputonpaperatnightandanalyzed,scrutinized,discussed,arguedabout,untileverypeculiarity,everyexception,everyunpredictablevariablefacedinthekitchenremodelingbusinesshadbeenreviewedatleastadozentimes—andsometimesevenmoreoftenthanthat—lookingforthesimilarities,thepredictable,thestandardizingopportunities.

Noone,theyweresure,hadeverspentasmuchtime,trouble,andintelligencetosolvetheproblemsassociatedwithkitchenremodeling.

Theyweredeterminedtogetitright.Theyweregoingtocreateakitchenremodelingsystemsuchastheworld

hadneverseen,thatcouldproduceanabsolutelypredictableresultinthehandsofnoviceworkerstrainedonlyintheirsystem,andtheyweregoingtofigureouthowtodoit—howtocompletelyrenovateandremodelanykitchen—walls,windows,floors,cabinets,lighting,plumbing—allwithinnomorethanthreedays.Guaranteed!

Andtheyweregoingtofigureouthowtodoitatacostsignificantlybelowthecompetition,ataqualitysignificantlybetterthananyonearound,andataprofitthatwouldjustifyitbeingdoneatall.

Thecompetition,MarinoSantosdiscovered(thoughhewasn’tsurprised),wasnottheproblem.Therewasnocompetition.Notforthecompanyheintendedtocreate.

Hismenreporteddailyonthewaste,inefficiency,lackofskill,disinterest,andlackofmanagementonthejobstheywereworking.

Materialsandmenrarelyshowedupontime,andsometimesnever.

Materialsandmenrarelyshowedupontime,andsometimesnever.Thejobsitewasusuallyamess.“Theyarepigs,”oneofhismenreporteddisdainfully.Whereheavyreconstructionwasrequiredandsurpriseswerediscovered(as

theyoftenwere),thejobcouldbedelayedforhours,evendays,untilthealmostalwaysabsentcontractor,orhisforeman,ifhehadone,showeduptopersonallysolvetheproblem.

No,asMarinoSantosknewonlysowell,contractorswerenotfastidiousmen.

Shoddyworkwasnormal;therewasnotraining.Experiencedpeoplewereeitherhiredoutofthehall,offthestreet,oras

subcontractors.Themarginsweresothinthattherewasnotimeormoney,norpeopletospendondevelopingnewpeople.

No,othercontractorswouldnotdetermineThreeDayKitchens’successorfailure.Heandhismenwould.

Theyworkedliketheyhadneverworkedbefore.Theyweredeterminedtogetitright.

Akitchen,morethananyotherroominahouse,isbuilttocertainpredictablestandards.

Approachedrandomly,thatis,withoutadatabaseofquantifiedexperience,itmightseemthateverykitchenpresentsauniqueproblem—thateveryoneisdifferent.Thisisnotthecase.

Unfortunately,fewsmallremodelingcontractorshaveeverquantifiedanyoftheirexperience,andsowhattheyfindthemselvesdealingwithdayinanddayoutareseeminglyuncommon,orproblematic,conditionsthatalwayscallforuncommonand,usually,costlyreactions.

Indeed,whatMarinoSantosandhiscrewdiscoveredisthatmostofthekitchenworktheymonitoredoverthetwoyearsofthestudywaspredictablyandmonotonouslythesame,presentingmeasurablyfewvariationsonarepetitioustheme.

Therefore,toinventakitchenremodelingsystemthatcouldguaranteeaninstalledkitcheninexactlythreedaysmeantonlythatMarinoSantosandhismenhadtodeterminewhatthosevariationsonthethemewere;createavarietyofpreplannedkitchensolutionstoaddresseachandeveryoneofthem;designapreprogrammedconstructionandinstallationstrategyforeachkitchensolution;recruit,hire,andthenrigorouslytrainasmallcrewofinexperiencedtechniciansintheirconstructionandinstallationsystem;andestablishamanagementsystemthatwouldassureMarinoSantosandhismenthattheirsystemwouldbeusedexactlyasplanned,eachandeverytime.

Andthen,practice,practice,practicetheseprocesses,overandoverandover

Andthen,practice,practice,practicetheseprocesses,overandoverandoveragain,untiltherewasn’taquestioninanyone’smindthattheycouldbeimplementedfaithfullyandimpeccablyeverysingletime.

MarinoSantosandhismenboiledtheirmissiondowntofiveessentialingredients:

1.Controlwhatissold.2.Controlhowitissold.3.Controlhowitisplanned.4.Controlhowitisbuiltandinstalled.5.Controlhowitismonitored.

Thefailureofacontractortoexercisecontroloveranyoneofthesefivecontrolpoints,asMarinoSantosandhismenreferredtothem,meantthatthejobwouldn’tbecompletedaspromised.

ThatwouldnotbeaproblematThreeDayKitchens.Theyrenewedtheirintentioneachday.Thenightfollowingtheirfirstpaidkitcheninstallmentwasaspecialnight

forMarinoSantosandhismen.Ithadgoneoffwithoutahitch,buttheyhadknownitwouldturnoutthatwaylongbeforethejobbegan.

Theyhadplanneditthatway,andtheyhadpracticedtheirprocessdiligently.Nothingwastakenforgranted.

Theircustomerwasastonished.Notonlywasthejobdoneexactlyaspromised,butthemenwhodiditwere

astonishinglyclean,wellorganized,andfastidiousintheircomportment—“joyful,”thecustomersaid,expressingherdelighttoMarinoSantosaboutnotonlyhavingthejobdoneexactlyaspromised,buthavingexperiencedpeoplewhoobviouslylovedtheirworksowell.

“Howdoyoufindsuchgoodpeople?”sheasked.MarinoSantossmiled.“IwishIknew,”hesaid.

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Thethirdcategoryofpreferenceisthefunctionalideal.Theunderlyingquestionalwaysis,Whatisthebestthingtodo?Thatcan

onlybeansweredbyunderstandingwhatpeoplewantmost.The“bestwayprocess”isdiscoveredbyansweringthefollowingquestions:

Whatonethingwouldourcustomers,employees,suppliers,andlendersmostlikeustodoforthemthatweandourcompetitorscan’tcurrentlydo?Hasanyoneevertriedtodothisthing?Ifyes,whydidtheyfail?Whatwouldbethebestwaytodoit?Whycan’twedoit?Whatwoulditmeantousifwecoulddoit?Howmuchwoulditcostustobeabletodoitthebestway?Isitworththecost?Ifyes,whatwouldbetheimpactonourcustomers,employees,suppliers,andlenders?Ifnegativeforanyorall,howwouldweovercomethatnegative?Ifwecan’tovercomethenegative,dothebenefitsoutweighthenegativeaspects?Ifwecan,shouldwedoit?

Thebestwayisalwaysthewaythateliminatestheprimaryfrustrationexperiencedbyanyoneofthefourprimaryinfluencersofabusiness.

Theprimaryfrustrationisthenegativeexperiencemostcommonlycomplainedaboutconcerningsomeone’sinteractionwithabusiness.

Thus,tobecomethefunctionalideal,youmusteliminatetheprimaryfrustrationexperiencedbyanyoneofthefourprimaryinfluencersofabusiness.

CHAPTERSEVEN

THEFOURTHCATEGORYOFPREFERENCE:THEFINANCIALIDEAL

Money,money,money.They’redrivingmecrazy!

—AnonymousCEO

I’mgoingtochangethetonerightnow.Ihavetotellyousomethingtrulyimportant.Ineedtotalkaboutmoney.ThemostimportantthingIhavelearnedisthatwedon’tspendmoneyas

muchasweconsumeit.Moneyisfood.Weconsumeitandconvertitintothings—thefeelings,associations,and

symbolswebelievein.That’swhataconsumersocietyreallymeans.Ittakesthematerialideaof

money,ingestsit,digestsit,andconvertsitintoitsideaofliving.

Tosome,moneyisconvertedintopower.Toothers,moneyisconvertedintosecurity.Toothers,moneyisconvertedintogettingbythebestwaytheycan.Toothers,moneyisconvertedintoself-esteem.Toothers,moneyisconvertedintosurvival.Toothers,moneyisconvertedintoscarcity.Toothers,moneyisconvertedintomagic.Toothers,sex.Tostillothers,beauty.Tomany,moneyisconvertedintosin.Andtostillothers,moneyisconvertedintoevil.

Thefactisthatmoneydoesnotexistwithoutpeople.

Thefactisthatmoneydoesnotexistwithoutpeople.Moneyhasnomeaningwithoutpeople.Moneyissimplyanideawehaveagreedupon,anideathatrepresentsto

everyoneofusournetworthintheworld.Awordaboutmoney.IhaveheardsomanyNewAgewould-bebusinessmavensrepeatthat

saddestofnoxiousplatitudes,“Dotherightthings,andthemoneywilltakecareofitself.”Letmetellyouthis:themoneynevertakescareofitself.Never.

YOUhavetotakecareofmoney.Daily.Notmonthly,notannually,butdaily.Bythehourisbest.Ihavelearnedthateveryonehasadifferentperceptionofmoney—ingests

money,digestsmoney,valuesmoney—inatotallysubjectiveandverypersonalway.Employees.Customers.Suppliers.Lenders.

Don’tscrewaroundwiththoseperceptions!Youwillloseahand!Andifyoupersist,you’lllosemorethanthat.Inafreemarketsystem,moneyisthemeasure.Inafreemarketsystem,moneyspeaks.Inafreemarketsystem,wehavebeentaughtonlytoowellthatwhatwe

owniswhoweare,andwhatweownistheby-productofmoney.Don’tmesswiththattruth.Don’teventhinkyoucanmesswiththattruth.Theminuteyoumesswiththattruth,nomatterwhatyoubelievetobetrue

aboutthepersonwhosemoneyyou’remessingaroundwith,thatpersonwillhaveyourhead.

Hewon’tintendto,mindyou.Hewouldn’tbelieveitofhimself.Buthewilldoitallthesame!Hewilleatyourheadforlunch!

Pleasedon’tcallmecynical.I’mnot.Pleasedon’tsendmee-mailsprovingmewrong,orthatyouhavean

exampleofhowwrongIcanbe.Pleasedon’tbother;I’msurethereareexceptionstotherule.Therealways

are.Buttheruleistherulenonetheless.

Buttheruleistherulenonetheless.Messaroundwithpeople’smoneyinafreemarketsystem,andyourgooseis

cooked.Evenifyoudidn’tdoit,they’llsayyoudid.Evenifyoudiddoitbutdidn’tintendto,yournameisstillmud.Evenifyouonlythoughtaboutdoingit,thewrathwilldescenduponyouas

thoughfromthehandofGod.Inafreemarketsystem,moneyisamonstrouslycomplicatedthing.

Itisallsomepeoplehave.Itisallsomepeopleare.Itisallsomepeoplewant.Itiswhatliesdownbesidetheminbedatnight.Itishowtheyvaluetheirday.Iftheythinktheyhavearighttoit,theywillkillyouforit.Iftheythinkthattheyareindangeroflosingwhattheyhave,theywill

buyahandgunandrunawaytothehillstoprotectit.Iftheybelieveitissexy,theywillmakelovetoit.Iftheybelieveitispower,theywillmakeaclubofitandbeatyou

senselessuntilyousubmit.Iftheybelieveitwillkeepthemsafe,theywilldressthemselvesinit.

Inafreemarketsystem,moneyistheonlythingthatstandsbetweenmostpeopleandtheawful,bottomless,terrifyingvoid.

Ilearnedaboutmoneyinthemostdifficultway,almostlosingmybusinessonceandforallin1985.Havingmyasssuedoffby“evildoers.”Spendingyearstopayoff$2millionindebt.

Icouldhavefollowedtheeasypath.Icouldhavegonebankrupt.Infact,that’swhatwassuggestedbymymosttrustedadvisersandhighlypaidconsultantsIbroughtintofixthemessIunexpectedly,inexplicablyfoundmyselfin.ButIdidn’t.Istayedthecourse.I’mgladIdid.

Because,whilemoneyiseverything…moneyisn’teverything.Trustme.Yourword,yourintegrity,iseverything.

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Thefourthcategoryofpreferenceisthefinancialideal.

You’veheardtheplatitude,“Dotherightthings,andthemoneywilltakecareofitself”?Letmetellyouthis:themoneynevertakescareofitself.Never.

YOUhavetotakecareofmoney.Daily.Inafreemarketsystem,moneyisthemeasure.Moneyspeaks.Don’tmesswiththattruth.Theminuteyoumesswiththattruth,nomatter

whatyoubelievetobetrueaboutthepersonwhosemoneyyou’remessingaroundwith,thatpersonwillhaveyourhead.

Tobecomethefinancialideal,youmusthaveintegritywhenitcomestomoney.Yourinvestors,yourbankers,youraccountants,yoursuppliers,yourcustomers,andyouremployeesmustknow,withoutadoubt,thatyouhaveintegrity.Youbackupyourwordwithcompatibleactions.

Moneycanbeyourallyandhelpyoubuildyourbusiness.Oritcanbeyourenemyanddestroyyourbusiness.Thedecisionbelongstoyou.

CHAPTEREIGHT

THEE-MYTHPERSPECTIVE

ConsciousnessandConsciencearesimilarintheirrespectivespheres,onebeingintheIntellectualCenter,theotherintheEmotionalCenter.ConsciousnessisKnowingalltogether;

ConscienceisFeelingalltogether.

—MauriceNicoll,PsychologicalCommentaries

I’msurethatcountlessbusinessesinthiscountryhaverespondedenthusiasticallyoverthepastseveralyearstotheclarioncallforareturntothoseworthwhilepuritanvaluesofservice,excellence,andcaring.Tothecreationof“visionstatements”and“missionstatements,”and“values,”andthenurturingoftheir“corporateculture.”

Youknowwhoyouare.Unfortunately,I’malsosurethat,despitetheinitialfervorsuchclarioncalls

create,mostofthesebusinessesoperatethesamewaytodayastheydidbeforetheflagwasraised,withequallyslipshodservice,mediocreperformance,andasgreedyandself-servingamind-setasever.

That’sbecauseneitherservice,excellence,norcaringcanbeproducedbyexecutivefiat,orbywishingitso.

TomPetersandothersuchguruscanrailalltheywant.Itwon’tmakeanydifference.

Theadoptionofservice,excellence,andcaringasstrategicoptions—asslogans—toreviveadeadordyingbusinessisnotonlyantitheticaltothetruemeaningofthosewords,butascynicalasanythingourMachiavellianmindscanproduce.Inshort,itwon’twork.

Service,excellence,andcaringarenotsomethingyoucandoanythingabout.Theyareastateofmind.

Whenabusinessisbereftofsuchqualities,itisbecauseitsfounders,itsowners,anditsmanagersarebereftofsuchqualities.

owners,anditsmanagersarebereftofsuchqualities.

Theydon’tcaretoserve.Itdoesn’tbotherthemthattheirperformanceisless,byfar,than

excellent.Theydon’tcareaboutthebusinessbecausetheysimplydon’tcareatall.

That’swhysuchwordsfailtoworkforthem,indeedformostcompaniesthatattempttoadoptthemfortheirownpurposes,totheirownstrategicends.

Becausethecynicaluseoftruehumanvaluesalwaysproducesexactlytheoppositeofwhatwasintended.

Truehumanvaluescannotbeadoptedfortheexpedientorthepragmatic.Theyarenot“tools”withwhichtodevelopa“managementstyle.”

Theyarevalues.Theyarebeliefs.Theyarehowoneviewstheworld.Theyareeitherapartofus,orthey’renot.

Theycannotbetriedonlikeasuit,therightcolor,therightshape.Theyarenottheretobeused.Theycan’tbe.Theywon’ttolerateit.Thereissomethingfundamentallyobsceneabouteventryingto.

So,tocreateanE-MythEnterprise,you—thefounders,theowners,andthemanagersofcompanieseverywhere—mustalreadypossessanE-MythPerspective.

Andifyoudon’talreadyhaveone,you’reindeep,deeptrouble.ThosewhopossessanE-MythPerspectivearewhatIwouldcallpragmatic

idealists.Theyareneverhappywithanythinglessthanperfection,buttheymeasureperfectionbyitsunparalleledabilitytoproducepracticalresultsintheworld.

Pragmaticidealistsarenotsentimental.Theyaredriven.Theyarenotpatient.Theyareoftenunkind.

Pragmaticidealistsdonotpandertothecomfortzoneinpeople.Theydonotmakeiteasyforpeopletogetby.

Mysaxophoneteacherwasapragmaticidealist.Helivedinaworldofperfection,buthepracticedachievingitinthisworld.Hecouldheartheperfecttoneinhishead.Hecouldimaginetheperfectscale.

Idoubtthatheeverwassatisfied,however,withanyofhisstudents,orwith

Idoubtthatheeverwassatisfied,however,withanyofhisstudents,orwithhimself.Yethelovedwhathedidandwhattheydid.Itwashispassionandhisparadox.

HewouldlistentoCharlieParkerwithawe,yethecouldheareveryflaw,everyinarticulatestatement,everyfailuretotouchthesublime,theperfect,theabsolute.

AndasmuchasheheldCharlieParkerinawe,Merlecouldnotforgivehimforhisindifferences,forhislassitude,forhisunwillingnesstogiveithisall.

Thatisthedarkconflict—thatexquisiteyettragictensionbetweenthepossibleandtheimpossible—thatliveswithinpragmaticidealists.

Theyarehopelesslystuckinalessthanperfectworld,inaworldinwhichmostpeoplequitlongbeforepragmaticidealistsevengetstarted.Yetitisnototherpeoplewhodrivepragmaticidealiststodesperation,whoarecontinueddisappointments.Itistheywhodisappointthemselvesmostofall.Theyareforeverlostintheirownfailings.

Asgoodastheyare,theyarenevergoodenough—neversmartenough,neverdisciplinedenough,neversensitiveenough.Yet,intheirminds,theyarealwaysontheedgeofsomething—abreakthrough,adiscovery,afindofexistentialimportance.

Pragmaticidealistsinbusinessknowwhatthedriveforexcellenceisallabout.Theyinventit.Theyareitsslaves.Theycannotimagineanyotherwaytolive.Excellenceisnotawordtothem.Itisnotastrategy,butafeeling,apassion—aprofoundidea.Itcoursesthroughtheirveins.

I’mtalkingabouttoughstuff.I’msuggestingthatgreatcompaniesbecomegreatcompaniesbecausethey

areheadedbygreatpeoplewhodon’tfeeltheirgreatness,andneverwill.Greatcompanies,E-MythEnterprises,areheadedbygreatpeoplewhoare

possessedbyaburninghungertocreatesomethingperfectintheworldthattheycan’tfindinthemselves.

Andtheycan’thelpthemselves.It’snotsomethingtheydooutofchoice.Theyarecompletelypossessed.Theyarecaughtupbyanideathatcontinuallyeludesthem,thathovers

tantalizinglyjustoutofreach,thatcan’tbeperfectlyseenorapprehended,butthatpromisestorevealitselfatanymomentiftheseekerwilljustextendhimselforherselfonestepmore.

Inotherwords,theE-MythPerspective,thedesiretocreateagreatcompany,oragreatsaxophonist,oragreatautomobile,oragreatgarden,isnotforthefainthearted,theweak,orthesentimental.

Ittakeseverythingonehas,andmore.Itisbothablessingandacurse.Understand,I’mnottalkingaboutheroeshere.Mostoften,thesepeopleareunbearabletobearound.Iftheyareimpeccableinonething,theyareoftendisastersinanother.Theyarewalkingcontradictions.

RinkBabka,forovertwodecadesoneofthetoptendiscusthrowersintheworld,toldmethathiscoach,DinkTempleton,oneofthemostbrilliantcoachestheworldhaseverknown,“smokedlikeachimney,dranklikeafish,andsworelikeatrooper.”Yetwhenitcametothesport,therewasnoonemorededicated,morepossessed,morecommittedtoperfectionforhisboys.

ItisnosecretthatWaltDisneywasadopewhenitcametobusinessfinance.Ifithadbeenleftuptohim,hisbusinesswouldhavefailedadozentimes.

ItisnosecretthatRayKrocheldpermanentgrudges,insultedhispeople,andwasknowntothrowfitsoftemperliketheworstadolescent.

ItisnosecretthatSteveJobscontrolseveryaspectoftheso-calledAppleExperience,fromtheclean,crisp,no-nonsensedesignandlayoutofApplestores,totheurgent“openme”(yetenvironmentallysound)senseandsimplicityofthepackagingofproducts,totheelegantandutilitariandesignoftheproductsthemselves.

Yet,whileallthesethingsaretrue,thereisbrillianceaboutsuchpeople—avitaledgethatdistinguishesthemfromeveryoneelse.Youcan—orcould—seeitintheireyes.

Thatvitaledgecomesfromthefactthattheyaredrivenbyideas.IdeasresideattheheartoftheE-MythPerspective.ThosewhoarepossessedbytheE-MythPerspectivearedrivenbyideas.Ideasarethefoodbywhichsuchpeoplearenourished,revitalized,andgiven

thelifetheycrave—ideasofsuchawesomesize,temper,andquality,thattheyarecompelledtore-createthem,togivethemphysicalform,togivethempresence,togivethemsubstance,togivethemrealityinthisworld.

DiscussinghisnovelAGoodDaytoDie,authorJimHarrisonexplainsthatthetitlewasborrowedfromIndianlore:ThatcomesfromtheNezPercesaying,thewholeideayouhavetobemorallyandspiritually,asawarrior—whetheryou’reawriterorbusinessperson—youhavetolivesocorrectlythatyoucanwakeupinthemorningandlookoutandsay,“Todayisagooddaytodie.”Oneveryrarelyisinthatkindofshape,butit’satremendousthingtobeabletosay.

Howmanyofushavelived“morallyandspirituallyasawarrior”?

Howmanyofushavelived“morallyandspirituallyasawarrior”?Howmanyofushavelivedsocorrectly,thatwecould,iffacedwithdeath,

letgoofourliveswithoutregret,completelyempty,devoidofshame,regret,longing?

Whatdoesitmeantolivecorrectly?Whatwouldawarriorbusinessperson,awarriormerchant,be?It’snotthebusinessatall.Thewholeideafallsapartifit’stieddownbyabusiness.

Thewholeideabecomesunthinkableifit’stieddownbytheideaofCheezBalls,orRitzCrackers,orJell-O.

ThewholeideaoftheE-MythPerspectiveisn’ttieddowntothecommercialrealityofwhatourbusinessisdoing;itexceedsit.

Itraisesitup.AnE-MythEnterprisedoesn’tmakeCheezBalls.BecauseCheezBallsarenotsomethingapersoncanfeelgoodabout.Nomatterhowhardheorshetries.AndifheorshecouldfeelgoodaboutCheezBalls,it’salreadytoolate.

No,iftherecouldbesuchapersonasawarriormerchant(andwe’rejustpursuingpossibilitieshere),IwouldimaginethatheorshewouldbeabletodiscriminatebetweenCheezBallsandothermoreworthwhilethings.

AnessentialcomponentoftheE-MythPerspectiveisthatwhatabusinesscreates—thecommoditiesorproductsitsellsorchoosestodevelopforsale—iscriticaltothevaluesinherentinthebusinessitself.

BecausemakingCheezBallshasnoinherentvalue,andisofvalueonlybecauseofthemoneyitcreates,andbecausecreatingmoneybymakingCheezBallsmustultimatelydegradeone’sdignity—one’ssenseofpersonalhumanvalue—thewarriormerchantwearespeakingabout(iftherecouldbesuchaperson)couldnotliveinsuchastate.Heorshewouldnotwishtobefoundbydeathinsuchastate.Itmostcertainlywouldnotbe“agooddaytodie”ifthatwerethecase.

HowcouldanybodychooseCheezBallsastheirintentionalfate?

I’vewatchedanironmanwintheIronMancontest.I’vewatchedaslight,wirywomanclimbstraightupamountain.

I’vewatchedaslight,wirywomanclimbstraightupamountain.I’vewatchedamonsterofamanwintheheavyweighttitlebysoundly

whippingaman-sizedmonster.I’vewatchedawhip-fastmasterdefeatanotherwhip-fastmasterwith

onestrokeinkarate.I’vewatchedamasterviolinistholdanaudienceinthrall.

Ontheotherhand,I’vewatchedMarinoSantosusemoreofhimself,whiletouchingmorepeoplemorepermanentlythananyoneofthesefiveeverdidorevercould.

Yet,totheworld,anyoneofthefivemightbeconsiderednoblerthanMarinoSantos,becausetheireffortswouldbeconsideredtobemoreworthwhile.

Idisagree.IbelievethatMarinoSantosinventedanewparadigmofserviceforthe

world.Ibelieveheheroicallyexceededthelimitsimposedbytheexistingparadigm

and,intheprocess,bybeingdiligent,conscientious,interested,deliberate,andintelligent,holdsthepotentialtopositivelyaffect—ifallelsegoesright—theemotions,standards,behavior,andqualityoflifeofmillionsofpeoplebyhisexampleofdoingordinaryworkinsuchanextraordinaryway.

Ibelievehetookmoreofhimselftotaskthanmostpeopleeverwill.Heextendedwhathefoundtotheoutsideworld,creatinganewmodelofbehavior,anewrigorofattention,anewlevelofconsciousness,bothintenseandrelaxedatthesametime.

IknowinmyheartthatMarinoSantoswouldnevermakeCheezBalls.Youknowit,too.Theremusthavebeenamomentintimeatthebeginningofthefreemarket

system,whenthehumanmindandthehumanheartwereasked,“CheezBallsornot,whatdoyouthink?”

Andthehumanbeingresponded,“Screwit,CheezBallsitis.”Thiswasamomentwhensomethinginoffensivelytrivialinserteditselfinto

thehumanequationassignificantlymoreimportantthanitwas;whensomethingmuchlesstrivial—somethingsobiginuswecouldn’tgetourarmsaroundit—foundnojustificationforhangingaround,sowesatdownonthesidelinesstuffingCheezBallsintoourfacesinstead.Theyweresoeasy,soavailable,sotasty—sodead.

Whatisitaboutusthatmakesitsoeasytobesoself-indulgent?WhatisitaboutafreemarketsystemthatseemstobreedCheezBalls

WhatisitaboutafreemarketsystemthatseemstobreedCheezBallslikeflies?

WhatisitaboutusinafreemarketsystemthatnevergrowstiredofyetanothervariationontheCheezBallstheme,whetherwe’repoets,philosophers,mathematicalgiants,computerprogrammers,dentists,doctors,collegeprofessors,truckdrivers,orpoodleclippers?

Inafreemarketsystem,somehow“PasstheCheezBalls,please!”alwayswinstheday.

But,waitasecond,CheezBallsaren’ttheproblem!

It’sthisthingaboutdying.It’sthisthingaboutalwaysbeingpreparedtodietoday.It’sabouthavinglivedsoimpeccably,havinglivedsocorrectly,having

carriedoneselfwithsuchpresence,suchdignity,havinglivedwithsuchawareness,suchinnervitality,suchgrace,suchintensityasif“afirewereraginginyourhair.”

It’sourchoiceofbeingthat’stheproblem.It’sthatwhichseparatestheE-MythEntrepreneur—andEnterprise—

fromalltheothers.It’sthewarriormerchant’spenchantforlivinginastateofgrace.

Iknowamanwhocansellanything,andhas.I’llcallhimMurray,butthat’snothisname.(Heknowswhoheisifheisreadingthis.)ThereissomethingaboutMurraythatdisturbsme.

Hehastheeyeofapirate.YouknowwhatImean:ithasacertainslanttoit.Itshineslikeahardblackstonecaughtjustrightinthesun—asifyoucouldwalktheplankforallhecares;ithasnothingtodowithhim.

YetMurraybelievesheisexactlytheoppositeofthat.

Murraybelievesinhimselfandwhathedoes.Murrayisallbusiness,andbusinessisallMurray.AsIsaid,hecansellanything,andhas.ToMurray,thereisnodifferencebetweenthings.Heistotallydevoidofvalues.Buthedoesn’tbelievethatabouthimself.Hebelieveshehasvalues;hetalksaboutthemallthetime.Hebelievesthatheisascientistandthathetrulyunderstandswhat

Hebelievesthatheisascientistandthathetrulyunderstandswhatpeoplewant.

Hebelievesthatheisascientistofthepassions.

Hehasmadeastudyofthem.Hehasdiscoveredthewordstousetoprovidepeoplewithwhathebelievestheywant.Hehasdiscoveredthewaytoprovidepeoplewiththeillusionthatthey’regettingwhattheywant.Hehasfoundawaytobelievethatwhathedoesisimportant.Murrayisamagician.

Hesellsthisservicetopeople.Hecallsitmarketing.Murraydoesn’tcarewhattheydowithit,solongasitinterestshim.Thatis

onethingthat’sinterestingaboutMurray:althoughhewillsellanything,hewon’tsellanythingthatdoesn’tinteresthim.Ithastopresentauniqueproblem,ithastobedifficulttodo,ithastopresentMurraywitharealchallenge,andithastohavethepotentialofmakingMurrayanawfullotofmoney.

Ifitwon’tmakeanawfullotofmoneyforMurray,itdoesn’tmatterhowbigachallengeitpresents.

ToMurray,everyonehastobesomeplace.Itreallydoesn’tmatterwhere,aslongasit’sworthMurray’stime.

MurraysitsinabigfatchairattheheartofAmericanbusiness.Thesewordswon’tletmego.

Attention,concentration.Intention,discrimination.Balance,organization.Excellence,innovation.Touchingtheworld,communication.

Thesewordsarevalues;thesevaluesarewords.Theyareattheheartofthesubjectathand.AlthoughyoumightthinkI’mtakingacircuitousrouteindealingwiththe

issuesofwhatmakesagreatbusiness,I’msimplynotdoingitinabusinesslikeway.

Butthat’sjustthepoint.Ihaveneverseenagreatbusinessthatdoesthingsinabusinesslikeway!

DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS

(ListentothePodcastversionatMichaeleGerber.com)

ThisistheE-MythPerspective.Service,excellence,andcaringarenotsomethingyoucandoanythingabout.Theyareastateofmind.Whenabusinessisbereftofsuchqualities,itisbecauseitsfounders,itsowners,anditsmanagersarebereftofsuchqualities.Theydon’tcaretoserve.Itdoesn’tbotherthemthattheirperformanceisless,byfar,thanexcellent.Theydon’tcareaboutthebusinessbecausetheysimplydon’tcareatall.

Greatcompanies,E-MythEnterprises,areheadedbygreatpeoplewhoarepossessedbyaburninghungertocreatesomethingperfectintheworldthattheycan’tfindinthemselves.

IdeasresideattheheartoftheE-MythPerspective.ThosewhoarepossessedbytheE-MythPerspectivearedrivenbyideas.

CHAPTERNINE

SHOOTINGFORTHEMOON

Henotbusybeingbornisbusydying.

—BobDylan,“It’sAlright,Ma(I’mOnlyBleeding)”

Ifbullshitwaswater,we’dhavealldrownedbynow.

—Anonymous

Iwanttotalkaboutthewordpoweragain—awordeasilyusedandjustaseasilymisunderstood.

Whatispower,afterall,buttheabilityto“do”?Ifwearetrulytopossesstheabilityto“do”anything—totrulypossess

power—itgoeswithoutsayingthatwemustbeconscious,present,awake,andfreeofallinternalandexternalinfluencesatthemomentof“doing.”

Inshort,to“do”—topossesspower—requiresthatwechooseto“do,”thatwemakeaconsciouschoice.

Ifoneacceptsthatdefinition,thenthosethingswedoautomatically—inreactiontoevents,feelings,orinternalprogramming—cannotbeconsideredtrue“doing,”inthattheyarenottrulydonebyus,butbyourhabits.

Forourpurposehere,thatsortof“doing”canmoreaccuratelybecalled“nondoing,”oractingouttheunconscious.Insuchcases,“it”didit,youdidn’t;therewasnoconsciouschoice.

Itcanbearguedthatmost,ifnotall,ofwhatwe“do”isofthissortof“doing,”outofourcontrol—justhappensreflexively.

Thinkaboutit.Howmanytimeshaveyoulashedoutatsomeoneautomaticallybecauseheorshetriggeredanoldrage?

automaticallybecauseheorshetriggeredanoldrage?Youdidn’tdothat,“it”did.Howmanytimeshaveyourepeatedaphysicalactliketakingoffyourshoes,

firsttheleftshoe,thentheright?

Youdidn’tdothat,“it”did.It’softenbeensaid,“Icoulddothatinmysleep.”Infact,wedo.Moreoftenthanwe’dcaretothink.

Okay,here’stheprobleminanutshell.

ItismybeliefthatatrueE-MythEnterpriserequiresanE-MythPerspective.

AndtohaveanE-MythPerspectiverequiresanE-MythMind.AndmydefinitionofanE-MythMindisonethatiscapableof

objectivity.Itisamindthatwatchesfromtheoutsidewhatisgoingonintheinside,

amindthatcangrasptheentiretyoftheconditioninwhichwefindourselves—atonce.

Itisamindthatcanseizethewhole.Imaginealllifeasweknowitoperatingwithinacircle.Theobjectivemind—theE-MythMind—wouldbeonethatcouldlive

outsideofthatcircle,whilestilllivinginsideofit.Theobjectivemindwouldbetotallyunidentifiedwithwhat’sgoingon

insidethecircle.Unfortunately,topossesssuchamindwouldrequirealevelof

awakeness,ofawareness,ofunbufferedhonesty,ofclarity,thatsimplydoesnotexistinustoday,ifiteverdid.

AndIbelievestronglythatratherthangettingbetter,ourconditionisgettingworse;thatthelikelihoodofusbecomingmoreobjective—thatis,lessidentified—isslim,andgrowingslimmerallthetime.

AlthoughIobviouslyamnotanoptimist,neitheramIapessimist.NorwouldIcallmyselfarealist;I’mtoofargoneforthat.

But,somewhereinthemiddleofallthis,IfindmyselfwithaparticularlyvexingproblemforwhichIhaveyettofindaname—aproblemthatplaguesmeineverythingIdo,andeverywhereIgo,andwitheveryoneImeet.And,lestyoudoubtme,Idomeaneveryone,noexception.

Myproblemhastodowiththeabsenceoftruepower.

Myproblemhastodowiththeabsenceoftruepower.EverywhereIgo,andineverythingIdo,Iamcontinuallyconfrontedbythe

overwhelminglyobviousand,tome,deeplydisturbingfactthatallofthepeopleIcomeintocontactwith—everylastsoul—aretotallyandunconscionablyasleep.Gonzo.Outtolunch.Onautomatic.Unconscious.

Inshort,unobjective.Ratherthanbeingunidentifiedwitheverythinggoingon—thatis,objective

—everyoneImeetishopelesslyidentifiedwithwhat’sgoingon—thatis,subjective:hopelesslyinseparablefromtheeventsofwhichtheirlivesaremade.

Inshort,IhavecometotheunhappyconclusionthatifthesampleIhavetakenoftheworldatlargeisareasonableapproximationofthetruth(andIbelieveanairtightcasecouldbemadetosupportit),then,despitewhatmostofuswouldliketobelieve,thereisnosuchthingassomeonewhocouldhonestlycallhimselforherselfanindividual—someonewhoiscapableoflivingbothinsideandoutsidethecircleattheverysametime,whoiscapableofachievingastateoftrueseparation,thatis,objectivity.Ifthatisso,andIbelievewithallmyheartthatitis,thenthecompanies(letalonethelives)ofsuchpeoplearedoomedbeforetheyevenbegin.

Ibelievethatisthereasonsofewcompaniesachieveevenamodestdegreeofsuccess,or,putmoredirectly,whysomanycompaniesfail.

Ithasnothingtodowiththeabsenceofbusinessacumenorbadluck,asiscommonlysupposed.Ithasmoretodowiththeunconsciousnessofthepeoplewhocreatethem,andthepeoplewhomanagethem,andthepeoplewhoworkinthem,andthepeoplewhobuyfromthem,andthepeoplewhoselltothem,andthepeoplewholendtothem.

Ithastodowithus.Withallofus.Andonlywithus.Withtheunconsciousconditioncalledhuman.

IfIweretravelinginatightsocialcircle,withlimitedinteraction,amongasmall,selectgroup,youcouldjustifiablysaytome,“Expandyourhorizons,Michael,andyourproblemswillbesolved.Notallpeopleareliketheonesyou’vedescribed.”

Unfortunately,atleastforme(afterall,it’smyproblem),that’snotthecase.Idon’ttravelinatightsocialcircle.Icomeintocontactwiththousandsofpeopleeachyear.Adiverserangeofpeople.Peoplewhoworkinevery

imaginablesectorofoursociety.Peoplewhodojustabouteverythingpeoplecandointhisworldofours.Scientists,craftspeople,artists,mechanics,musicians,businesspeople,ditchdiggers,speakers,politicians,carpenters,bankpresidents,writers,technicians,computerprogrammers,loanofficers,managers,millionaires,paupers,greatthinkers,anddullards.And,despitealltheirdifferences,Ifindittobetragicallytruethatallofthem—everysinglelastlivingoneofthem,withoutexception—arecaughthopelesslyandhelplesslyinthemuckandmireofdeep,lasting,impenetrablesleep.

Theyareallhopelesslyidentifiedwithwhattheydoandwithwhotheythinktheyare.

Theyarefullofthemselves.Theyfinditimpossibletoseparatethemselves,forevenamoment,fromthe

foolstheyhavelearnedtoplay,fromthecostumestheyhavegrownaccustomedtowear.

AndthisisastrueofthepositivethinkersIhavemetasitisofthenegativethinkersIhavemet.ItisastrueatthefarleftoftheNewAge,asitisatthefarrightoftheOldAge.

Whethertheybehumanistsorreligionists,whethertheybeapoliticalordeeplypolitical,whethertheybeconservationistsortheopposite,whateverthatwouldbe,allofthem,everylastsingleoneofthepeopleIhavemet—yes,I’mtalkingaboutyouandme—allofus,aredead-to-the-worldasleep.

NobodyIhaveevermetlivesoutsidethecircle.Everysingleoneofushasanagendawithwhichwehavebecome

inseparablyidentified;arolethatfitsustoatee;awayofmovingthroughtheworldthathasbecomeourpersona,ourcomfortzone,thereflectionweseeinourmoment-to-momentmirror;thepersonagewecontinuetoconveyouttheretotherestoftheworld,andinheretoourselves,saying,overandoveragain,automatically,withoutseriousquestion,inathousanddifferentinstants,toeveryoneandeverything,“That’sme!”

Untilfinally,weareouragendas.Andintheprocess,weceasetotrulybe.

Therecanbenofreedomaslongaswelivethisway.Therecanbenotruepowerwhenoneisasleep.Therecanbenotrueresponsibilitywhenoneoperateslikeamachine.

AndsoIamnotsurprisedatthedumbconclusionswe“businesswriters”reach.

Iamnotsurprisedthat,asyousearchforsolutionstoyourbusiness

problems,youareconstantlybeingcajoledtostayinsidethecircleratherthantostepoutsideit;thatyouareconstantlybeinginvitedtobecomemoreidentifiedratherthanlessidentified;thatyouarecontinuallybeingofferedanewtechnique—anewrhetoric,anewbelief,thenewestwisdom,thelatestinsight—whetheritbe“megatrends2015,”orSixSigma,or“NewAgethinking,”or“theinformationage,”or“theinformationworker,”“excellence,”or“creatingchaos,”or“one-minutemanaging,”or“leadershiptraining,”or“win–winrelationships,”orwhateverit’scalled.Becausewhoeverwroteitisspeakingaboutstuffinsidethecircle,frominsidethecircle,andallonecangetfromthereismoreofthesame.

Itcannotsetusfree!Fortheproof,lookaroundyou.Nomatterhowmanynewthoughts,nomatterhowmanynewideas,no

matterhowmanynewbreakthroughsin“humantechnology”comeourway,theyallwillmoveusinonlyonedirection,downthestreetofoursleepintoadreamworldofdelusion,noneofthemhavingmadeadifference,noneofthemcapableofmakingadifference,andnoneofthemeverwillmakeadifferenceforyouorforme—notuntilsomethinginus,inyouandme,changes.

Theproblemisthatwethinkwe’reawake.

Thatwethinkwealreadyareobjective.Thatwethinkwealreadyareindividuals.Thatwethinkwealreadyarefree.Thatwethinkthatwethink!

Theproblemisthatwethinkwe’remakingdecisionsallofthetime,wheninfactwe’renot.

Wehaveneverevenlearnedhowtomakedecisions.We’redreaming,hopelesslyadriftinaseaofreactiontoconditionsthat

control,cajoleus,romanceus,anddeludeus.

Wecallthesereactions“passion.”Wecallthesereactions“moralindignation.”Wecallthesereactions“desire.”Wecallthesereactions“thoughts,”“hope,”“interest,”and“creativity.”

Andweenduppraisingthesereactions,asthoughtheywerequalities

instead.Wecallourreactionseverythingbutwhattheyreallyare:associations,

dreams,neuralconnections,fantasies.Andthenwetakeonestepfurther—andthisisthemalevolentstep,the

deadlystep,thestepofpsychopathology.Wesaytoourselves,thatsinceallofourconditioningishabitual,then,to

developourselves,tobecomemoreeffective,tobecomebetterpeople,tobecomemorehuman,allwehavetodoisdevelopbetterhabits.

Voilà!Ratherthanattemptingtocomeawake,oursolutionistobecomebetterat

sleeping.Thisisaverycomplicatedproblem.Itcouldgoinanydirection.Ontheonehand,I’mpresumingtoprovideyouwithaprescription,a

template,forbusinesssuccess.Ontheotherhand,I’mtellingyouwhysuccessisimpossible,giventhewayyouandIare.

Whataconundrum!

Howdowegetaroundthis?Howdowepursuetheimpossible?Isthisacul-de-sac,oristhereawaythrough?

Thefirststepinthiscomplicatedprocessisforustoagreeaboutourcondition.Wemustagreethatnomatterwhatanyonetellsus,nomatterhowmanypsychologistswelistento,nomatterhowmanypromisesexpertsinenlightenmentandhumanbehaviormake,nomatterhowmanyidealistic,enraptured,NewAgesongsofhopecomeourwayabouttheevolutionofman—aboutthecivilizingprocess,aboutthegloriousfuturethatweallthoughtawaitedusintheglorious“ThirdMillennium”inwhichwearealreadyseveralyearsentrenched,theageofthe“empoweredindividual”—wearenot,andhavenotbeenbecoming,morehumanastimewearson.Wearebecominglessso—bytheminute.

Examplesabound.Iwalkinacountrywhereviolentkillings,rapes,robberies,assaults,and

burglariesoccureverysingleday.Inincomprehensiblenumbers.Iwalkinacountryinwhichthevastmajorityofhighschoolgraduates

cannottellyouwhenAbrahamLincolnservedaspresident,donotknowwhereelectricitycomesfrom,cannotcalculatethecircumferenceofacircle,cannot

readatbetterthantenth-gradelevel,cannoteventellyouinwhatstateNewYorkCityislocated.

Iwalkinacountryinwhichtheincidenceofbatteredwivesandbatteredchildrengrowsexponentiallyeachyear,andinwhichhumanabusesounfathomable,soinhuman,sodegradingismorepervasiveworldwidethanatanyothertimeinhistory.

IwalkinacountryinwhichIhaveheardthatatleast26.2millionofushaveadiagnosedmentaldisorder,inwhichroughly50percentofourmarriagesendindivorce,andinwhichatleast1.5million—oneoutofevery200—Americansareaddictedtococaine.

Iwalkinacountry—inaworld—inwhichourforestsaresystematicallybeingdestroyed,ourwaterissystematicallybeingcontaminated,ourairissystematicallybeingpoisoned,ourwildlifeissystematicallybeingannihilated,ourpetsaresystematicallybeingabandoned,ourpeoplearesystematicallybeingignored,andourfamiliesaresystematicallybeingdecimated,atever-increasingrates,withnosignofabatementinanyquarter.

Iliveinacountryinwhichatleast42,000peoplearekilledeveryyearinautomobileaccidents.

InwhichIhaveheardthat75percentofourfamiliesaredysfunctional.Inwhichourentertainmenthasbecomeincreasinglymorejuvenile,

increasinglymoreviolent,increasinglymoreinane.Walkdownthestreetsofanylargecity.TrythesubwayinNewYork.Yes,it’sbetterthaninthepast,butit’sstill

notgood.Andthisiswhattherestoftheworldisshootingfor?Tobecomemorelikeus?Totradetheirsleepforoursleep?SomuchfortheNewAge.Somuchforbeingmorehuman.Weareawalkingdisgrace.But,takesolace.Atleastit’snotourfault.We’reallsoundasleep,forGod’ssake!HaveyoueverwatchedourCongressinthemidstofdebateonimportant

issues?Didyouobservehowsleepworks?Didyouseeourloftyrepresentatives’mouthsmoving,theireyesinert,their

limbsflailingaway,theiremptysleeves,theirshoesfilledwithstraw,theiremptymouthsutteringemptyphrases?

Doyouunderstandwhatwasgoingon?Didyoubychancegetapictureofyourselfwatching,yourmouthmoving,

Didyoubychancegetapictureofyourselfwatching,yourmouthmoving,youreyesinert,yourlimbsflailingaway,youremptysleeves,yourshoesfilledwithstraw,youremptymouthutteringemptyphrases?

Wereyoushockedbywhatyousaw?Allofthesolutionsoutthere—everylastsingleoneofthem,nomatterhow

worthwhiletheymaysound—meanabsolutelynothingifwe,thepeopleofthisworld,remainthesame.

Ifwecontinuetothinkwe’reawake…butwe’renot.Ifwecontinuetoactasthoughwearemakingconsciousdecisionsthatwe

havechosentobewhoweare.Butifweseehowpowerlesswehaveallbecome—howmuchofourselves

wehavewillinglygivenup;howreadywehavebeentoliveinthisunconsciousstate,automaticallywalkingthroughourlivesasthoughfastasleep,doingourroutines,ourtapdances,singingourlittlesongs,andrepeatingourlittleritualsthatlongagolostanysemblanceofmeaningorgrace—ifwecanseethat;ifforoneshuddering,remarkableinstantwecanrecognizethatweareasleep,andwecanseethatwearepassivelyrecitingourowndogmas,ourownprescriptions,ourownautomata,ourownritualizedbeliefs,thenourpurposecomesfleetinglytolife.

Itisatthemiraculousinstantwhenwefirstseeourselves—whenwerecognizehowprogrammedweareandhowbadlyweneedtobereprogrammed.Itisatthispower-packedinstantwhenwecomeface-to-facewithourselves,notfrominsidethecircle,butfromoutsidethecircle—lookingdown,sotospeak.Itisatthisinstantwhenanythingispossible,andonlyatthisinstant,whenforafleetingmomentwearewideawake.

Thisistheinstantofawakening.Itisaninstantofintenseenergy,ofintenselife,ofintensevitality.Itistheinstantwithinwhichthepossibilityoftruefreedomcanbetruly

feltandborn.

Andsomyprescriptionbeginsandendswithus.Myprescriptionsaysthat,tobuildanE-MythEnterprise,onemustbeinterestedinfarmorethanjustbusiness.

Merebusinesscannotholdtheinterestofanintelligentpersonforlong.Onemustbeinterestedinthedignityofone’sownlife.Andofthelivesofthose

aroundus.

Onemustbeinterestedindoingwhatonedoeswiththeutmostattention,withtheutmostcare,withtheutmostinterest,andwiththeutmostengagement.Onemustsetstandards:difficultstandards,standardsthatriseabovetheordinary,standardsthatonewouldbewillingtosharewiththeworldasexemplarsofhumanbehavior,standardsthatonewouldbewillingtopublishforallpeopletosee,standardsthatonewouldbewillingtobeheldaccountableforandwouldbeeagertobemeasuredagainstalwaysandforever.

Onemustbeinterestedinhowthingslook,andhowthingsfeel,andhowthingswork,andthen,finally,inthemoney.Onemustknowthatthemoney,whilenotkey,isaseriousconsideration,butonlyaconsideration.Itisnottheprimaryreasonorajustificationforbeinginbusiness.

Onemustforgettheeconomicmodelofreality.ForanE-MythEnterprise,thereisnoeconomicmodel.Theeconomicmodel

isamyth.ForanE-MythEnterprise,thereareonlypeople,andcosmicforcesthatnone

ofusunderstands,andWhatever,orWhoever,createdallthis.Onemustpayattentiontopeople:towhatisimprisoningthem;towhatis

frustratingthem;towhatisinhibitingthem;towhatisrestrainingthem;towhatisdeprivingthemofarich,energizing,intelligent,andforcefullife.

Inordertopayattentiontoothers,onemustbeconsciousofoneself.Onemustbehonestwithoneself.Onemustcontinuallywatchoneself.

Noexcuses.Nodefenses.Nolies.Nodishonesty.Noexit.

Onemustbecomeasoldierontheconsciousfront.I’mnotsayingthattobuildanE-MythEnterpriseonemustbeconscious—

that’stoomuchforanyonetoask.

WhatIamsaying,however,isthatonemustwishtobeconscious.Onemustwishtobewhole.

Onemustwishtobewhole.Onemustwishtobeobjective.Onemustwishtobeimpartial.Onemustwishtobedetached.Onemustwishtobefreeoftheautomaticresponses,theunconscious

behaviorthatfillseachofourdays.Onemustwishtobehumaninthefullestsenseofthatword.WhenIthinkofJohnAnderson…WhenIthinkofMaryConnerBrown…WhenIthinkofMarinoSantos…WhenIthinkofMerle…WhenIthinkofeachextraordinarysmallbusinessownerIhavehadthe

privilegetoworkwithsinceIstartedmybusinessthirteenyearsago…

WhenIthinkofallthat,Ithinkofthewishthatsawusallthrough.Notthewishtobesuccessful—thatwasneveritforanyofusandneverwill

be—butthewishtodowhatwesetouttodointhemosthumanwaypossible.Thewishtobetruetosomethinghigherthanthemultitudeofcompeting

prioritiesthatcontinuallydragusdowntoearth.Thewishtotouchsomethingquieter,finer,deeper,moreresolute,more

compassionate,morecourageous,morechallenging,moreworthy,morehuman—moredignified—inthecourseofourlives.

Itismycontentionthatnobusiness,nomatterwhatitdoes,canbecomegreatifitspeoplewishforanythinglessthanthesethings.

AnE-MythEnterpriseisabusinessthattakespersonalresponsibilityfortheconditionoftheworlditfindsitselfin;fortheconditionofthepeoplewithwhomitinteracts;fortheconditionoftheirchildrenandtheirchildren’schildren;fortheconditionoftheveryqualityoflifeitself.

Abusinesswithconscience.Thatis,Ibelieve,theonlymissionworthyofthename.Tocreateaworldinwhichpeoplearepresent,honest,open,andalive.Tocreateaworldinwhichpeoplemakeconsciousdecisionsingood

conscience.Thatiswhatshootingforthemoonisallabout.Andonecannotdoitinone’ssleep.Itrequiresallwehave.Anditrequiresitnow.

DESIGNINGTHEENTERPRISE:THETAKEAWAYPOINTS

(ListentothePodcastversionatMichaelEGerber.com)

AnE-MythEnterpriseisabusinessthattakespersonalresponsibilityfortheconditionoftheworlditfindsitselfin;fortheconditionofthepeoplewithwhomitinteracts;fortheconditionoftheirchildrenandtheirchildren’schildren;fortheconditionoftheveryqualityoflifeitself.

Abusinesswithconscience.Thatis,Ibelieve,theonlymissionworthyofthename.Toaccomplishthismissionrequiresallthatwehave.

ToBuildYourE-MythEnterprise…GoToMichaelEGerber.com

BecauseMichaelGerberisTheE-MythCoach…

ForimmediatehelpandaFree

E-MythEnterpriseCD,calltheMichaelGerberTeamat760-752-7912

SEARCHABLETERMS

Note:Entriesinthisindex,carriedoververbatimfromtheprinteditionofthistitle,areunlikelytocorrespondtothepaginationofanygivene-bookreader.However,entriesinthisindex,andotherterms,maybeeasilylocatedbyusingthesearchfeatureofyoure-bookreader.

abuse,problemof,175accidie,83action.Seerightactionactualization,business,48–49agenda,personal,171AIG.SeeAmericanInternationalGroupInc.AmericanInternationalGroupInc.(AIG),4AnaheimBulletin,38,45Anderson,John

E-MythEnterpriseMatrixand,42–48asextraordinarybusinessowner,180asquintessentialentrepreneur,37–42

AppleComputerCompany,27,78,100discriminationinbusiness,29hands-oninnovationand,32asprocess-oriented,119–20visualidealand,56–58

AppleComputerStore,VisualMatrixcomponentsand,78AppleExperience,154–55archetype,54–55associations,asreactions,173attention,29

concentrating,forbusiness,26–27selfconsciousnessand,179–80asvalue,162

automobiledeaths,175awake,172.Seealsoconsciousawakeness,levelofobjectivemindand,167awakening,86

awakening,86MasterGameand,84fromunconscioushabits,177–78

AwakeningtheEntrepreneur,xiiiBabka,Rink,154balance,asvalue,162BearandPigfable,xix–xxbehavior,newmodelof,158beliefs,177.Seealsovaluesbestwayprocess

fordoingeverythingbetter,120–21great,andgreatperson,118–19predictabilityand,120questionsfor,121–22,139–40

BestWayskill,31–32,35–36Blanchard,Ken,xviiBlanchard,Margie,xv

breakthrough,delusionof,172Brown,MaryConnerbusinessasmediumfor,103asextraordinarybusinessowner,180instinctand,100resourcefulnessof,97–98rulesforemotionallyvitalbusinessand,107–10,111–13statemandatesand,103–7vocationalschooland,95,101–3

business.Seealsogreatbusinesses;smallbusiness;success,inbusinessactualization,categoriesofpreferenceand,48–49allureof,17answersassolutionsin,13–14,21buildinggreat,25–27,82–83commercial,vs.humanenterpriseand,69–70comparedtomoney,15–16comparedtowar,82–83conscienceandconsciousnessin,181costofvisualpreparation,65–66death/rebirthofconstruction,127–38dignityoflifeand,178–79discriminationin,28–29eliminationofprimaryfrustrationand,121–22,124–25,139–40energyflow,26–27essentialingredientsawakein,86

essentialingredientsawakein,86existence,andpeople’sdesire,7–8failure,causeof,99,169fiveskillsfor,creation,25–36FordCoupas,idea,42–45freemarketand,3–4,7funin,xxivgameof,4,13,14,43,92–94ideaaslifegiving,24–25invention,xxi,xxii,10–11aslivingthing,16–17management,withoutvalues,150–51meaningof,topeople,xxivasmedium,103missingmeaningin,23–24mission,183moneyassecondaryto,179MOREconceptand,13–14,20,21,24owners,extraordinary,180peopleasproblemfor,8–9,20PigandBearfableand,xix–xxprimaryinfluencersand,18–19asproductofpeople,69–70rulesforemotionalvital,107–10,111–13sellinganillusionin,160–61serviceasincompletein,12–13,21small,95–107,180statemandates,andsurvivalof,104–6successtemplatefor,5–6survivalin,14–16synchronicity,48–50synergy,xxivtransformationof,67–69,74–78useofVisualMatrixin,70–74valuesand,150–51visualimpressionand,53–55,62vitality,98–99working,vs.workforliving,130–38

business-as-a-product,69–70

caring

aspuritanvalue,149asstateofmind,150,163

CEO.SeeChiefExecutiveOfficer(CEO)chaos,172intoorder,throughorganization,35organizingpeopleand,xiv,30

CheezBallsE-MythPerspectiveand,156–57asmetaphorfortrivial,159Santosand,158

ch’i,businessenergy,26–27ChiefExecutiveOfficer(CEO),98–99choice,conscious,166choiceofbeing,E-MythEnterprise/Entrepreneursand,160Churchill,Winston,33circleoflife

inside/outside,atsametime,168–69livingoutside,171lookingdowninto,andawakening,177–78operatingin,169stayinginsideof,171–72

clarity,167cleanliness.Seeorderclients,73color,componentofVisualMatrix,70–71

transformingbusinesswith,75–76commercialenterprise,vs.humanenterprise,69–70communication,32–33,36

coloras,70–71detailasvisual,72–73E-MythEntrepreneursand,93formas,71order/scaleas,72assecondruleofvitalbusiness,108,111asvalue,162visualimpressionsas,53–56

company.Seealsobusiness;greatbusinessesoneintenmillion,xxiiasproductofimagination,xxiii–xxiv

asproductofimagination,xxiii–xxivconcentration,34E-MythEntrepreneursand,93asfundamentalskill,25–27innovationand,32rightactionand,29asvalue,162

conditioning,habitualandculturingunawareness,173conflict,inpragmaticidealist,152–53confusion,vs.disorientation,85CongressoftheUnitedStatesofAmerica,176connection,thirdruleofvitalbusiness,108,111–12conscience,businesswith,xvii,109

E-MythEnterpriseand,181asmission,183

consciousawareness,powertodoand,165choice,powertodoand,166ofoneself,179wish,qualitiesof,180world,creating,xvii

consciousness,newlevelof,158consumersociety,moneyand,141contradiction,headsofE-MythEnterpriseand,153–54control

pointsforremodelingsystem,137–38process-orientedcompanyand,125

conundrum,forsuccess,174creativity,asreaction,173customer(s),86

askingmyth,xiv,12–13,21moneyperception/integrityand,143,146–47preferencesand,7unconscious,andbusinessfailure,169

decisionmaking,vs.reactions,173delusionofawake,172,177deRopp,RobertS.,83–84desire,asreaction,173detail,componentofVisualMatrix,72–73

detail,componentofVisualMatrix,72–73transformingbusinesswith,75–77

discrimination,34–35E-MythEntrepreneursand,93innovationand,32providingintention,28–29asvalue,162

disintegration,offamilylife,175Disneyland,65–66,72Disney,Walt,61–62,92

businessasmediumfor,103contradictionin,154love-hate-relationshipwith,90–91

disorientation,vs.confusionand,85doing/thinking,165–66

identificationwith,169–70NewAgeand,171–72

dreams,asreactions,173drugaddiction,175

ease,organizationproducing,xveconomicmodel,asmyth,179educationalincapacity,xvemotionalideal

Brown,andbusinessdemonstrating,102–7fiveessentialskillsaspartof,93–94MasterGameand,83–84Merle,saxophoneteacherand,87–90assecondcategoryofpreference,81,111sevenrulesof,107–9,111–13

emotionalingredient,ofE-MythEnterprise,xxiii–xxivemotionalpreferences,42–50storyillustrating,95–107

emotionalproduct,ofimagination,xxivemployees.Seealsopeoplecustomeraskingand,xivgreatbusinessand,86moneyperception/integrityand,143,146–47preferencesand,7unconscious,andbusinessfailure,169

unconscious,andbusinessfailure,169vitalityof,andCEO,98–99

empoweredindividual,lossof,174–76E-Mythbooks,xxiE-MythEnterprise,50.Seealsogreatbusinesses

childlikepartcreating,94–95choiceofbeingand,160asconscious,180contradictioninheadof,153–54creatorschangingrulesand,92–93economicmodelasmythfor,179emotionalidealand,81E-MythPerspectiveand,151,163,167fouressentialingredientsof,xxiiiimaginingand,xxilove-hate-relationshipand,90–91,92managementofimpressionsand,55–56personalresponsibilityand,181,183prescriptionfor,178rules/traditionsand,92–93valuesatheartof,162winningOlympicsand,xiii,xxi

E-MythEnterpriseMatrixAndersonand,42–48componentsof,42instinctiveuseof,43

E-MythEntrepreneurschoiceofbeingand,160fiveskillsand,92–93asinventors,xxiiirarepeople,astrue,xxi

E-MythMastery,xiiiE-MythMind,objectivityand,167E-MythPerspective

asblessing/curse,153–55commoditiesreflectingvaluesin,157E-MythEnterpriseand,151,163,167exceedingcommercialreality,156–58ideasatheartof,155pragmaticidealistsand,151–52requiringE-MythMind,167service/excellence/caringand,149–50,163

service/excellence/caringand,149–50,163TheE-MythRevisited,xiiiTheE-Myth,xiiienergy

asbusinessch’i,26–27overutilizationof,30,35

enterprise,humanvs.commercial,69–70entertainment,violent,176entrepreneur

Andersonasquintessential,37–42clubforgreat,xxiifrommanagerto,91MBDprogram,xxiii

entrepreneurialspirit,povertyof,56,59–61exampleof,62–65

environmentaldestruction,175essentialingredients,86

forbuildingE-MythEnterprise,xxiiTheE-MythClub,xxii

excellenceaspassion,forpragmaticidealist,153aspuritanvalue,149pursuitof,102–3rhetoricfrominsidecircle,172asstateofmind,149,163asvalue,162

fable,ofPigandBear,xix–xxfailuretothrive,business,99,172fantasies,asreactions,173FederalExpress(FedEx)

costofvisualpreparationand,66–67asprocess-oriented,119–20,120VisualMatrixcomponentsand,78

FedEx.SeeFederalExpressfeelingloved,seventhruleofvitalbusiness,109–10,113

financialidealintegrity/moneyand,146–47moneyconversionand,141–43

financialingredient,ofE-MythEnterprise,xxiii–xxivfinancialinstitutionsperceptionofmoneyand,143

perceptionofmoneyand,143preferencesand,7

financialpreferences,42–50financialproduct,ofimagination,xxiv“Thefishstinksfromtheheaddown,”99FlyingHigh&FieldstoneGreen,77–781947FordCoup,37–42

asbusinessidea,42–45form,componentofVisualMatrix,71

transformingbusinesswith,75–77freemarketsystem

allureofbusinessin,17breedingself-indulgence,159businessbuildingin,3–4businessrequirementin,7elevationoftrivialin,159failure,vs.success,xiv,4–5fifthruleofthumbin,14–16firstruleofthumbin,7–8fourthruleofthumbin,13–14moneyin,143–45,146–47MOREconceptand,9–11,13–14,20,21secondruleofthumbin,8–11thirdruleofthumbin,11–13

frustration,primary.Seeprimaryfrustrationfunbusinessas,xxivinnovationand,32

functionalidealbestwayprocessand,121–22,139creatingprocess-orientedcompanytoachieve,129–36owningprocess,examplesof,119–20people-oriented,vs.process-orientedcompaniesand,115–19,126–28primaryfrustrations,eliminating,122–25,140ThreeDayKitchensand,133–38

functionalingredient,ofE-MythEnterprise,xxiii–xxivfunctionalpreferences,42–50

functionalproduct,ofimagination,xxivgame,ofbusiness,4,13,14–16,43

recreatingnew,92–93rewardsvs.,93–94

games,life

games,lifeidentifying/inventing,83–84rulesand,84

AGoodDaytoDie,155Gothicchurch,scaleof,72grace

lossof,andawakening,177stateof,andwarriormerchant,160

greatbusinessesbuilding,25–27,82–83businesslikeoperationsand,xvconsciousnessandconsciencein,181keepingessentialingredientsawake,86workingsynergistically,xxiii

groups.Seeprimaryinfluencershabits

psychopathologyofdevelopingbetter,173unconsciousdoingand,166wakingupfromunconscious,177–78

Hanselman,Steve,xxiiHarrison,Jim,155HeartfeltConstruction,primaryfrustrationeliminationand,124HearthstoneAuto,primaryfrustrationeliminationand,124Hitler,Adolf,33TheHolisticHealthInstitute

Brownand,95statemandatesand,103–7

Horejs,Vit,xxhuman

behavior,becomingexemplary,178–79,180condition,becomingworse,174–76enterprise,vs.commercialenterprise,69–70technology,delusionand,172unconscious,condition,169

IBM,86

salesapprenticeshipat,90idea(s)

1947FordCoupasbusiness,42–45behindbusiness,24–25

behindbusiness,24–25E-MythPerspectiveand,155,163primaryinfluencersand,18–19transmissionof,33

identificationwithdoing/thinking,169–70invitationto,more,171–72

illiteracy,problemof,175illusion,sellingof,161–62iMac,58imagination,companyasproductof,xxiii–xxivimagining,E-MythEnterprise

and,xxiImpactReports,73impressions,managementof,peoplevs.,55–56individualempowered,asfalse,174–76individual

livingbothinside/outsidecircle,169thinking,vs.being,172–73

industrysegmentation,byconstructioncompany,131–32influencers.Seeprimaryinfluencersinformation

age/worker,172componentofVisualMatrix,creativeusesof,73transformationofbusinesswithVisualMatrix,75–77

innovation,31–32,35–36E-MythEntrepreneursand,93asvalue,162

integrityfinancialidealand,146–47moneyvs.,145

intentiondiscriminationand,28–29asvalue,162

inventionofbusiness,E-MythEnterpriseand,xxi,xxiioflifegames,83–84

iPhones,27,29,58iPods,27,58IronMancontest,157iTunes,58

job,asbusinesstopeople,xxivJobs,Steven,27,57–58,92

businessasmediumfor,103controllingAppleExperience,154–55love-hate-relationshipwith,91understanding,andAppleComputer,100

Jung,Carl,archetypesand,54

Kennedy,JohnF.,33TheKenBlanchardCompanies,xviiKing,MartinLutherJr.,33kitchenremodelingsystem

analyzingvariablesfor,134identifyinginefficienciesin,135–36managementsystemfor,137–38

Kroc,Ray,66,91businessasmediumfor,103changingcompanyrulesand,92–93contradictionin,154

leadershiptraining,172LehmanBrothers,4lenders,86.Seealsofinancialinstitutions

customeraskingand,xivunconscious,andbusinessfailure,169

LensCrafters,120letters,fromclients,73life.Seealsocircleoflife

comparedtogame,83–84developingmore,throughbusiness,28–29dignityof,andbusiness,178–79disintegrationoffamily,175ideagiving,24–25inside/outsidecircleof,168–69operatingincircleof,167qualityof,andresponsibilityfor,183

Lincoln,Abraham,33

Lincoln,Abraham,33losapasionadossinigual.See“theonlyones”love-hate-relationship

business/employer/employeeand,90–91student/teacherand,89–90

MacEvangelists,29managementofimpressions.Seeimpressions,managementofMaster’sof

BusinessAdministration(MBA),xxiiMaster’sofBusinessDesign(MBD)betterthanMBA,xxiiE-MythEnterpriseand,xxiii

theMasterGame,aimof,83–84TheMasterGame:BeyondtheDrugExperience,83–84matriarchalcommune.SeeTwinTreesMBA.SeeMaster’sofBusiness

AdministrationMBD.SeeMaster’sofBusinessDesignMcDonald’sCorporation,visualpreparationcostof,66

meaningfulwork,sixthruleofvitalbusiness,109,112–13megatrends2015,172mentalillness,problemof,175Merle.SeesaxophoneteacherTheMichaelGerberClub,xxiiMicrosoftCorporation,27mind.Seeobjectivemindmiracleofoccurrence,101–2mission,ofbusiness,183

conscienceas,xviimoney.Seealsofinancialidealbusinesscomparedto,15–16comparedtofood,141converting,tointangibles,142inherentvaluesvs.,157integrityvs.,145making,asendgame,161–62Murrayand,161–62NewAgeplatitudeabout,142perceptions,143PigandBearfableabout,xxrule,infreemarketsystem,143–45,146–47assecondarytobusiness,179

moralindignation,asreaction,173moralweight,fifthruleofvitalbusiness,109,112MOREconcept,9–11,13,20,21

MOREconcept,9–11,13,20,21AppleComputerCompanyexampleof,27businessideaand,24–25HolyGrailof,14Landof,14–15

Murraybusinessand,160–61asmagician,161makingmoneyand,161–62

mystique,ofSantos’screw,126–27

negativethinkers,identifiedwithdoing/thinking,170neuralconnections,asreactions,173NewAge

identificationwithdoing/thinkingfor,171–72ironyof,176platitude,aboutmoney,142rhetoricfrominsidecircle,172

NewCo,Weissberg,Marty,and,61NewYorkCity,175,176NezPerce,155

objectivemind

E-MythMindand,167thinking,vs.possessing,172–73

objectivityachievingtrue,169E-Mythmindand,167subjectivityvs.,168

obstacles,overcoming,E-MythEnterprisesand,xiii–xivOldAge,170OldCo,Weissberg,Marty,and,61one-minutemanager,172TheOneMinuteEntrepreneur,xviiTheOneMinuteManager,xvii“theonly

ones,”126–27,131kitchenremodelingsystemand,134–38

orderasfirstruleofvitalbusiness,107,111transformingbusinesswith,76VisualMatrixand,72

VisualMatrixand,72ordinary,vs.sublime,usesofVisualMatrix,73–74organization

E-MythEntrepreneursand,93innovationand,32producingease,xvrightactionand,29oftime/spaceandwork,xiv,30–31,35asvalue,162

originalresult,xiv,xxii

paradigmofservice,new,158paralysisofwill.SeeaccidieParker,Charlie,152passion(s)

E-MythEnterprisesand,xiii,xxiexcellenceas,forpragmaticidealist,153

peopledefinitionofbusinessfor,xxivemotionalpreferencesof,95asmanageable/unmanageable,inbusiness,8–9managementof,vs.impressions,55–56organizationof,xiv,30asproblem,8–9,20unconscious,andbusinessfailure,169

people-orientedcompanyfindingbestpersonand,117–18process-orientedvs.,115–19

perceivedpreferences,foreverybusiness,7perfection,innovationand,35–36Perot,Ross,91,103perseverance,E-MythEnterprisesand,xiii,xxi–xxiiPeters,Tom,102PigandBearfable,xix–xxPixarAnimationStudios,58PizzaHut,120PositionofOne,3–21

E-Mythand,18powerof,19

positivethinkers,identifiedwithdoing/thinking,170power

powerconsciouschoiceand,166definitionof,165packedinstant,177–78true,absenceof,168,171

pragmaticidealistconflictwithin,152–53E-MythPerspectiveand,151–52

preference,categoriesof,7.Seealsoemotionalpreferences;financialpreferences;functionalpreferences;visualpreferencesbusinessactualizationand,48–49emotionalideal,81–113E-MythEnterpriseand,50financialideal,141–47functionalideal,115–40primaryinfluencersand,42,50storyillustratingall,38–41,42–48visualideal,51–80

preprogramming,visualimpressionsand,55–56present.Seeconsciousprimaryfrustration

defined,123eliminating,121–22,124–25,139–40

primaryinfluencersbusinessactualizationand,48–49businesssuccessand,18–19categoriesofpreferenceand,42,50compositionof,7primaryfrustrationand,122,140

process,bestway.Seebestwayprocessprocess-orientedcompanycontroland,125creationof,afteraccident,127–38discoveringbestwayand,121–22,139–40examplesof,119–20people-orientedvs.,115–19turningordinaryintoextraordinary,118–19

productvitality,98–99program,recognizingunconscious,177–78psychopathology,ofmoreconditioning,173puritanvalues,149purpose,fourthruleofvitalbusiness,108,111

purpose,fourthruleofvitalbusiness,108,111pursuitofexcellence

businessasmediumand,103vs.pursuedbyexcellence,102

qualities,vs.reactions,173qualityoflife,responsibilityfor,183

reactions,vs.decisions,173Reagan,Ronald,33reprogramming,regainingpowerthrough,177–78resistance,organizationproducing,xvresponses,stereotypical,andprimary

frustration,123–24result,original,xiv,xxiirhetoric,new,172rightaction

concentrationand,29organizationand,30–31,35

rituals,meaningless,177rule(s)

foremotionallyvitalbusiness,107–10,111–13E-MythEnterpriseand,92–93infreemarketsystem,7–16

rule(s)gameoflifeand,84money,infreemarketsystem,143–45,146–47

salesman.SeealsoMurray

believingoppositeabouthimself,160sellinganillusion,161

SantosConstructioneliminatingprimaryfrustrationand,125industrysegmentationand,131–32losesstarperformer,127–28

Santos,Marino,128constructionframingbusinessand,126–27creationofnewbusinessand,129–32asextraordinarybusinessowner,180kitchenremodelingbusinessand,133–38

kitchenremodelingbusinessand,133–38mystiqueofcrewand,126–27newparadigmofservicefor,158singlenessofpurposeand,125

saxophoneteacher(Merle),44,87–88bargainwithstudentand,89–90comparedtoE-MythEnterprisecreators,91–92,94–95asextraordinarybusinessowner,180aspragmaticidealist,152

scale,componentofVisualMatrix,72transformingbusinesswith,75–77

Schultz,Howard,andStarbucks,100scientist,falsebeliefandselling,161self-indulgence,infreemarketsystem,159service

asincompleteword,xiv,12–13,21newparadigmof,158aspuritanvalue,149sellingmarketingas,161–62asstateofmind,150,163

shootingformooncreateconsciousworldand,xviiinE-MythEnterprise,181–82

Sicilianexpression,99SixSigma,172skills,five

forbusinesscreation,25–36E-MythEntrepreneursand,92–93

Skinner,B.F.,96sleep,impenetrable,xv

habitualconditioningand,173identificationwithdoing/thinkingas,170–71recognizing,andawakeningfrom,177–78

smallbusinessemotionalpreferencesofpeopleand,95–107owners,extraordinary,180

Smith,Fred,66–67,91,103SongofCentralEquilibrium,26space,organizationof,30–31,35sportinggoodsstore,VisualMatrixand,67–69,74–78

sportinggoodsstore,VisualMatrixand,67–69,74–78standards,extraordinary,178–79Starbucks,100

organizationoftime,spaceandwork,31VisualMatrixcomponentsand,78

statemandates,forvocationalschool,103–7stateofgrace,warriormerchantand,160stateofmind,service,excellenceandcaringas,150,163subjective,vs.objective,168Subway,asprocess-oriented,119–20success,inbusiness,7

conundrum,174newlearning/thinkingand,xvtemplatefor,5–6temporarysolutionsand,13–14visualidealand,58,79–80visualimpressionand,53,62

success-proneness,6–7Supercuts,asprocess-oriented,119–20suppliers,86

customerasqueenand,xivperceptionofmoney/integrityand,143,146–47preferencesand,7

surface,seeingbeneath,62SweetWaterMedicalOffice,primaryfrustrationeliminationand,124synchronicity,inbusiness,48–50

T’anMeng-hsien,26template

forbusinesssuccess,5–6impossibilityof,forsuccess,174

Templeton,Dink,154“TheRedWheelbarrow,”51thinking.Seealsodoing/thinking

beingvs.,172–73ThirdMillennium,174ThreeDayKitchens,133–38time,organizationof,30–31,35touchingtheworld,162traditions,E-MythEnterpriseand,92–93

traditions,E-MythEnterpriseand,92–93transformation,ofbusiness,usingVisualMatrix,67–69,74–78TwelveIronSandals,xxTwinTrees,96–97

unconscious,168

actingoutthe,166behavior,freeingoneselffrom,180habits,awakeningfrom,177–78mind,asstorehouseofimages,53–55people,andbusinessfailure,169state,andCongress,176

values

businesseswithout,150–51devoidof,salesman,161atheartofgreatbusiness,162inherent,vs.makingmoney,157puritan,149

visualidealAppleComputerCompanyand,56–58businessesdisplaying,66–67criticaltosuccess,61–62exampleof,51–53familybusinesslacking,58–61,62–65asnecessity,79–80transformingbusinessinto,67–69,74–78unconsciousimpressionsand,54–55VisualMatrixcomponentsand,70–73

visualimpression,51–53,55visualingredient,ofE-MythEnterprise,xxiii–xxivVisualMatrix

sixcomponentsof,70–73,79–80transformationofbusinessusing,67–69,74–78

visualpreferences,42–50,62–65newstandardof,57–58sixcomponentsof,70–73,79–80

visualpreparation,costof,65–66visualproduct,ofimagination,xxiii–xxivvisualrenaissance,58vitality,ofCEOandbusiness,98–99vocationalschool

vocationalschoolbirthof,95,101–2survivesstatemandates,103–7

WaldenTwo,96WaltDisneyCompany,58,119–20war,businesscomparedto,82–83warrior

businessperson,156concept,ofliving,155–57merchant,156–57,160

WashingtonMutual,4Watson,Tom,86,92–93Weissberg,Marty,58–65

transformingbusinessand,67–69VisualMatrixand,74–78

Weissberg,Morris,58–61,65,67–68Weissberg’sArmy-NavySurplusStore,59,65

transformationof,74–78Weissberg,Sol,58–61,65,67–68

VisualMatrixand,74–78Williams,WilliamCarlos,51,53win-winrelationships,172thewish,keytogreatbusiness,181work

asbusiness,topeople,xxivdoingordinary,inextraordinaryway,158forliving,vs.workingbusiness,130–38organizationof,xiv,30–31,35

Zune,27

ACKNOWLEDGMENTS

Ofcourse,nobookisbornwithoutinspiration,education,anddog-dirtyhelp:Tomynew-foundteamatCOLLINS,includingmypublisher,HollisHeimbouch,mysenioreditorandnurse,BenSteinberg,andthestronganddedicatedproductionteam,HelenSong(don’tyoujustlovethatname?),NicoletteCutler,WilliamRuoto,andElliottBeard,thankyouall.

Tomygreatnewfriendandworkhorseeditor,StevenGottry,wherewouldIbewithoutyou?

Tomyfriendforallseasonsandcommitted(attimesreluctant)agentandcautioneer,StevenHanselman,we’vegotalotmorelefttodosonorestingonyourlaurels.

Tomyexpansive,dedicated,cherishedandcherishingwife,LuzDelia,thisisthesecondoneyou’veseenmethrough.

ToKenBlanchardwhohasnowwrittenforewordstomylasttwobooks,butisnot,himself,tooforwardatall,thankyouKenforyourcareandpassionateinterestinmeandallthingsentrepreneurial.

Tomyreadersbythemillionsandtomyassociatesinallmyvariousventures,includingE-MythWorldwide,InTheDreamingRoom,ChiefDreamerEnterprises,ClubEntrepreneurNetwork,TheEntrepreneurCapitalCorporation,Biz-Dog.com,TheMichaelGerberClub,andmany,manymore,thankyouallforyourzealouscommitmenttotheoutcomeweallcrave—thetransformationofsmallbusinessworldwide.

Andtoyou,dearreader,ifyou’vegottenthisfar…thisisallaboutyouandwhatyouhopetodo…howcoulditbeanyotherway?

AbouttheAuthor

MICHAEL E. GERBER is the legend behind the E-Myth series of books,which includes The E-Myth Revisited, E-Myth Mastery, Awakening theEntrepreneurWithin,TheE-MythManager,TheE-MythPhysician,andTheE-MythContractor.Histitleshavecollectivelysoldmillionsofcopiesworldwide.Heisanentrepreneurandanin-demandspeakerandconsultant.Gerber isalsothefounderofE-MythWorldwide,ChiefDreamerEnterprises,IntheDreamingRoomLLC,CertifiedCapitalAdvisors, theEntrepreneurCapitalCooperation,andtheMichaelE.GerberClub.

www.MichaelEGerber.com Visit www.AuthorTracker.com for exclusiveinformationonyourfavoriteHarperCollinsauthor.

ALSOBYMICHAELGERBER

AwakeningtheEntrepreneurWithin,TheE-MythRevisited,

andE-MythMastery

Copyright

THEE-MYTHENTERPRISE.Copyright©2009byMichaelGerber.AllrightsreservedunderInternationalandPan-AmericanCopyrightConventions.Bypaymentoftherequiredfees,youhavebeengrantedthenon-exclusive,non-transferablerighttoaccessandreadthetextofthise-bookon-screen.Nopartofthistextmaybereproduced,transmitted,down-loaded,decompiled,reverseengineered,orstoredinorintroducedintoanyinformationstorageandretrievalsystem,inanyformorbyanymeans,whetherelectronicormechanical,nowknownorhereinafterinvented,withouttheexpresswrittenpermissionofHarperCollinse-books.

AdobeDigitalEditionMay2009ISBN978-0-06-192071-4

10987654321

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*http://www.smallbusiness.com/wiki/Venture_capital.

*TheMasterGame:BeyondtheDrugExperience,deRoop,RobertS.NewYork:Dell,1974.

*TheMasterGame:BeyondtheDrugExperience,deRoop,RobertS.NewYork:Dell,1974.