Cost Assessment

Quick reference

• 00:04 In this video, we're gonna look at step five.
• 00:07 Get leverage. So what does that mean?
• 00:10 Leverage is that one piece that just, it pushes you over the edge.
• 00:16 It's going on that diet when the doctor tells you, hey your cholesterol's high,
• 00:20 if you keep eating all this crap, you're gonna have a heart attack right,
• 00:24 that's leverage.
• 00:25 And what leverage does it really makes us take that action and
• 00:30 that's what you wanna get with your team.
• 00:32 And in yourself, you wanna make sure that you get enough leverage that there's
• 00:36 a consequence and leverage can also be something positive couldn't it, okay.
• 00:41 So you wanna make sure you get the leverage.
• 00:43 Typically you start with pain because if there's a pain point
• 00:46 that gets people into movement, it gets them to change their behavior,
• 00:50 gets them to change how they feel, right.
• 00:52 That's that pain when you get enough leverage, now momentum starts.
• 00:57 If there's not enough leverage here, you may or
• 01:00 may not get the results that you're looking for, okay.
• 01:03 So the first piece of getting leverage is cost assessment.
• 01:07 What is the cost?
• 01:08 What will it cost your company?
• 01:11 What will it cost your team?
• 01:12 What will it cost your department?
• 01:14 What will it cost you, if the desire outcome is not achieved.
• 01:19 Okay, what will it cost, so what will it cost you in time?
• 01:22 Time is a big one.
• 01:23 If you guys are putting time into a project and that project doesn't get done
• 01:28 or doesn't get completed successfully, how much time are you gonna lose?
• 01:33 Is it six months, is it a year?
• 01:35 Is it years?
• 01:37 Okay, a lot of times that's great leverage if you're gonna lose that time.
• 01:41 What's it gonna cost you in money?
• 01:44 Money is a great leverage piece.
• 01:47 If we don't get this done we would have lost all this money, okay?
• 01:51 I love the story for GoDaddy, right.
• 01:54 So when GoDaddy first came out,
• 01:56 they put all the investor's money into a Super Bowl ad.
• 02:00 And that was leverage.
• 02:02 If that Super Bowl ad did not take off and
• 02:05 they didn't get those customers coming in, that would've been a pretty bad gamble.
• 02:09 But luckily for everybody, it worked out.
• 02:11 So now we have GoDaddy, right.
• 02:13 But that's big leverage.
• 02:14 Hey, we're putting a ton of money into this thing,
• 02:17 we better get the result, okay?
• 02:19 The third thing, what's it gonna cost you in market share, okay?
• 02:24 Are you gonna go from the number one company, down to number ten, right?
• 02:29 How many clients are you gonna lose if you're not successful, okay?
• 02:34 So you have to do a cost assessment and get very clear and
• 02:38 very specific, and you wanna share that with your team, so
• 02:41 that everybody can connect to what leverage that is.
• 02:45 One of my favorite examples of leverage is,
• 02:47 I have an executive coaching client and he runs an international global company.
• 02:53 And we were working on a project and we were talking.
• 02:56 I was looking for some leverage, I'm like what's the leverage
• 02:59 That I can really use to get him to take action.
• 03:02 And so here is what we came up with, I told him to think of a company or
• 03:05 a person that he really didn't like, right.
• 03:07 And this guy is very friendly he likes most everybody.
• 03:11 I go think of one that you really dislike, okay and I had him do that.
• 03:15 And then once he came up with that company, we put down a cheque, I had him
• 03:19 write a cheque, write it out by hand, plug out the cheque book write out a cheque for
• 03:24 $1,000 and made out to that company, right?
• 03:28 For a job well done, that's leverage.
• 03:33 And I told them, if we didn't achieve this outcome, that he was gonna take that
• 03:37 cheque and he was gonna mail it off to that company, wow.
• 03:42 And it wasn't the $1,000,
• 03:43 it was the idea of getting that money to that company that really messed them up.
• 03:49 And guess what, he never signed that cheque.
• 03:52 Not even close.
• 03:52 We took that goal and we crushed it.
• 03:55 Because that leverage was back there, right?
• 03:58 The leverage was back there.
• 03:59 And all the things we've been talking about.
• 04:01 Okay, makes sense?
• 04:02 Good. So let's recap.
• 04:03 So you have to get leverage that's step five.
• 04:06 You have to do a cost assessment.
• 04:08 What will it cost if the desired outcome is not achieved?
• 04:11 And you have to get very clear and you have to share that with your team.
• 04:15 What will it cost you in time?
• 04:16 What will it cost you in money, market share, etc.
• 04:19 Whatever it is for you guys that's really gonna hit home.
• 04:22 We're gonna go a little deeper into this on the next video.
• 04:25 So we'll see you there.

Lesson notes are only available for subscribers.