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Episode 64

Jan. 20, 2022

Topic: 4 Decisions Every Business Must Get Right with 'Scaling Up' Author Verne Harnish

Guest: Verne Harnish, author of 'Scaling Up (Rockefeller Habits 2.0)' and founder of the Entrepreneurs’ Organization (EO)

In this episode we discuss:

  • How and why Verne was inspired by industrial titan John D. Rockefeller

  • Why business fundamentals are so important and why "Scaling Up" focuses on People, Strategy, Execution and Cash

  • No surprise, the No. 1 issue Verne sees for business owners right now is attracting and retaining talent

  • How he recommends employers to "find a strange fishing hole" to recruit people

  • The story of how one waste management company and its CEO Gene Brown scaled by profiling their ideal team member to find more people like him

  • Whether short-order cooks could be a good fit for pest and lawn care firms

  • The power of an "optional" question on a job application and hiring to core values

  • The four things you should look for when hiring: will, culture/values fit, history of getting stuff done, skill

  • Why it's better to think of your company like a pro sports team vs. a family

  • Why the 1-page strategic plan is so powerful and how to execute it

  • The importance of the daily huddle to communicate tactics

  • How to keep daily huddles effective

  • How to analyze and improve cash flow and make sure you're not "growing broke"

  • Why Verne says to look at gross margin dollars per employee

  • Why Gary Hershberger from Stonyfield Yogurt took employees to lunch routinely

Resources mentioned:

Notable: "In these plain old businesses, you really can have 3-5x gains over the industry average if you'll get serious about some of these fundamental disciplines." —Verne Harnish

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