Monthly Archives: August 2010

Drive – The Suprising Truth about What Motivates Us

DRIVE – The Surprising Truth about What Motivates Us

Author: Daniel H. Pink

http://www.danpink.com

RATING: 8.3 out of 10

OVERVIEW: The evolution of motivation has finally changed after thousands of years, from “carrots” to self-actualization and intrinsic reward.

Shocking!  Drive is a book that is far beyond a business book.  The book is universally relevant to all people who are involved with business, life, and relationships.  The author Daniel Pink describes how motivation is very similar to the OS or Operating System of a computer.  An operating system is the brains or the engine of a computer that make it run.  All human decisions have been made with a motivation as the catalyst.

In the beginning of time we ran off ‘Motivation 1.0’.  Motivation 1.0 is the need for food, thirst, survival and sex.  It was the most basic of needs to survive and that was the primary motivation to humans.  It is my assumption that he believes in evolution.  So if there were caveman, then motivation 1.0 existed.  If you don’t believe in caveman then you can skip motivation 1.0. 

As we became more civilized our motivation 1.0 wasn’t compatible with the needs of the modern day.  The world upgraded to motivation 2.0.  Motivation 2.0 was based on punishment and reward.  Pink compared it to Newton’s First Law; I paraphrase, “things in motion tend to stay in motion and things not in motion tend not to be in motion unless acting on by another force.”  For the last 200 years American business, parental guidance, and organizations were primarily built on motivation using carrots.   Like the turtle that would continue to walk as long as the carrot was continually dangling in front of him.  Recognition, bonuses, and rewards in business and at home may cause less effective outcomes than what the upgraded motivation 3.0 can offer.

Motivation 3.0 I can only describe as finding joy in work itself.  When money or physical rewards are out of the equation people perform at the highest level.  Don’t get me wrong, I believe Motivation 2.0 has its place.  But science has proven that when you compensate someone for performing a work, in many cases it will turn from a hobby, into a job.  Tests have shown higher performance, better focus, and better results when work is performed for the pure love of it.

So the next time you think giving allowance to your children for a chore or a bonus to your employee for a good deed, try picking up this book.  The book goes into much more detail to show where motivation 2.0 and motivation 3.0 are appropriate.

MY NOTES:   

Motivation 1.0: natural drive for survival. (Instinct)
Motivation 2.0: seek reward and avoid punishments.
Motivation 3.0: intrinsic value for work performed

  • Wikipedia proves Maslow’s theory. People contribute without motivation 2.0. (intrinsic motivation)
  • Wikipedia dwarfs any physical encyclopedia.  It is all done with free labor.  They destroyed Microsoft Encarta by putting them out of business, using non-professionals who are unpaid.

“Humans are predictably irrational”

  • We can no longer rely wholly on Motivation 2.0.  Machines are replacing all mundane tasks that were so prevalent 100 years ago.
  • Heuristic work is now required.  Work that doesn’t follow a formula.  We must use our own intellect that only humans have.
  • Work that is repetitive will benefit from Motivation 2.0.  But machines are quickly replacing those jobs

Possible negative consequences to Allowance, Reward, Recognition and Bonuses

  • Don’t get me wrong, these rewards have their place.  But we rarely think there are negative consequences.
  • Typically when you are paid for an activity you lose interest.
  • Many jobs shouldn’t be financially rewarded. Like blood drives, they do better when no reward is given.
  • Rewards can cause unethical behavior and unwarranted risk.
  • Rewards can commonly cause shortcuts that will eventually cause cutting corners.
  • Rewards can cause expectation and an assumption that task is undesirable
  • Do not pay allowance for chores. Pay a commission.

‘Management’ could very well limit potential. If you manage your people it could mean you’re limiting their potential or they’re not the right person for the job. Be a Leader!

Instead of “you need to” or “you should” into “consider” or “think about”.    

The critical question is not, “How can I achieve?” but “What can I contribute?” 
-Jim Collins

 

Ronald Reagan – American Hero

[youtube=http://www.youtube.com/watch?v=2pbp0hur9RU&fs=1&hl=en_US&color1=0xe1600f&color2=0xfebd01&border=1]

SPEECH: A Time for Choosing

Wow, President Ronald Reagan was a powerful speaker.  He is loved by almost all politicians from all parties.  The summarized 4 minute video of his original 30 minute speech, recaps the power of empowering every American.  Please listen as this speech is one for the ages.

Below is the link to the entire 30 minute video:

Reagan Video – 30 Minutes

“Whether we believe in our capacity for self-government or whether we abandon the American Revolution and confess that a little intellectual elite in a far-distant capital can plan our lives for us better than we can plan them ourselves. You and I are told we must choose between a left or right, but I suggest there is no such thing as a left or right.”

The Total Money Makeover

THE TOTAL MONEY MAKEOVER


Author: Dave Ramsey

http://www.totalmoneymakeover.com/

RATING: 9.4 out of 10

OVERVIEW: Outlines 7 ‘baby steps’ to create financial freedom using your personal budget.

You know I’ve always considered myself extremely good with money.  I’ve always budgeted my money strictly and never even paid one cent in interest on a credit card.  Although I will admit that I’ve paid too much interest on my cars, which I’ve now paid off.  While I’m taking the time to brag about myself (sorry); I was far from a perfect financial manager.  Dave Ramsey showed me many things about money that I didn’t know, I didn’t know.

Money can be very frustrating.  This book makes money matters simple and described money in steps that everyone can follow.  Whether you make $10 per hour or $10+ thousand per month, this book will teach you that it’s more important what you spend then what you make.  Our society teaches us to focus more on ever growing income but fails to recognize that you’re “only rich if you spend less than you make.”  Many of us believe that if you can afford the monthly payment that you can afford the car, house or toy. 

Learn the power of working towards living a debt free life.  Be preventative and prescribe yourself the behavior needed to manage your money.  Money isn’t about math but about behavior.  If you don’t track your money, you will ask yourself “where you money went” instead of telling your “money where to go.”  If you’re willing to change the attitude that you can have what your parents had, that took them a life time to achieve, and then you can live no one else.  “Live today to like no one else (budget tightly), so later you can live like no one else (spend freely)”.

Please read this book.  I don’t care how well you manage money or the lack thereof.  You can learn something that can change your life so you can be financially free and not a financial burden to those who will have to take care of you.

MY NOTES:

  • LIVE TODAY LIKE NO ONE ELSE SO TOMORROW YOU CAN LIVE LIKE NO ONE ELSE.

BABY STEPS (Each step must be completed to move forward)
Step 1 – $1,000 to start an Emergency Fund.
Step 2 – Pay off all debt using the Debt Snowball*.
Step 3 – 3 to 6 months of expenses in savings.
Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement.
Step 5 – College funding for children.
Step 6 – Pay off home early.
Step 7 – Build wealth and give! (Invest in mutual funds and real estate).
*Debt Snowball: Paying off the smallest debt first.

  • All people are born not knowing how to drive. All people aren’t born knowing how to manage money. We aren’t stupid, we need only be educated.
  • If you can control the man in the mirror you can not be skinny and rich.
  • Don’t be financially fat. Don’t suck in when you look at the financial mirror.
  • Getting rich isn’t a risk or theory, it’s a mathematical certainty.  (read the book, you can see the math)
  • “There are no shortcuts to anywhere worth going”
  • Living right isn’t complicated, it may be difficult, but not complicated.
  • College is a luxury not a need.
  • No one has perfectly strong discipline to pay extra on loans. Don’t set up a 30 year loan and promise to pay 15 year rates. Something will happen.

3 uses of money: 1.Fun 2.Investing 3.Giving

*There are so many gems of knowledge in this book.  Very Interesting!

Success with PowerPoint – Art of the Start

RATING: 9.0 of 10

The Art of the Start was written by Guy Kawasaki. An incredible book providing a road map to starting a business. Here is an entertaining presentation on how to have successful presentations, called the 10-20-30 rule:

[youtube=http://www.youtube.com/watch?v=liQLdRk0Ziw&hl=en_US&fs=1&color1=0xe1600f&color2=0xfebd01&border=1]

Art of the Start is an incredible book for anyone interested in starting a company. Recently I started a company and Guy Kawasaki’s advice was priceless.

Here is a entertaining presentation on how to have successful presentations.

The link 10/20/30 Rule

BILLIONAIRES TO GIVE FORTUNES FOR CHARITY


The rich are selfish and look down on the poor; at least that’s the stereotype of the rich.

 

There are 36 Billionaires that want to prove otherwise.  Bill Gates and Warren Buffet are leading the way by making 80 calls to the richest men in America.  Surprisingly 36 of those 80 agreed to give half of their fortunes away.  The combined total of committed charitable donations will be $90 Billion dollars.  If my math skills don’t fail me, $90 Billion is the equivalent of the average household income ($45,000) of 2 Million American’s for 1 year.

I believe in the giving nature of Americans.  Americans give more as a ratio of our incomes than any other country in the world.  Way to go AMERICA!

Check out the article: Billionaire Link

OUTLIERS – The Story of Success

OUTLIERS – The Story of Success


http://www.gladwell.com/outliers/index.html

RATING: 9.2 out of 10

OVERVIEW: Astonishing insights to explain the reasons for successes that occur from phenomena outside our everyday understanding

Malcolm Gladwell, he is the man!  I would recommend you read anything that Malcolm Gladwell writes.  He is humble, objective, insightful, inquisitive, and brilliant.  He can take a concept that seems so trivial and turn it into an ah-ha moment.  His brilliance is proven in the fact that he can turn complex concepts into simple non-forgettable case studies.

Random facts are fascinating to me.  I may not know the everyday common knowledge, but if you ask me what Michael Jordan’s scoring average for his career or where WD-40 got its name, I will more often than not have an answer for you.  (FYI: WD-40 stands for ‘Water Displacement’ test 40)  Though my random knowledge is often not beneficial, Outliers is very relevant.

Learn why the best Hockey Players birthdays are very likely to be in January and February.  Learn why the Chinese are typically perform better at Math, even though on average they’re not genetically smarter than any other race.  Learn why Bill Gates and Steve Jobs would not be among the richest men in the world had they not been born in 1955.  Learn why it takes 10,000 hours to be an expert at something.

Thank you Malcolm Gladwell for sharing your book Outliers to the public.  You can also read his other great books: The Tipping Point, Blink, and What the Dog Saw.  Enjoy, I know I have.

MY NOTES:

Canadian Hockey kids who are born before April have a higher likelihood to become a professional
•    Hockey cut offs are on April 1st in Canada.  Being several months older than a peer when you’re 8-10 years old can represent 5%-10% more time to become physically more mature
•    That difference in size, muscle, and brain development can be significant at that age.
•    When you make the team because you’re older and made the hockey deadline it means that you’ll get professional coaching.  Thus resulting in polarizing talent, the coached get better while the non-coached do not.
•    Hence the reason why if you’re born in January or February you have the best chance to succeed in hockey.  You’re not always more physically gifted by the time you’re an adult, but you started with coaching so you get on a fast track that others can never catch up to.

The same concept for Hockey applies to Baseball; except for August is the month to be born
•    The cutoff for baseball is July 31st
•    The timing of your birth in sports is an incredible boost to the start of your athletic career

“You don’t have to be a genius, just smart enough”
•    A basketball player in many cases, only need to be tall enough
•    Geniuses have no strong correlation to business or life success.  YEA!!!  That means we all have a chance.
•    It takes more than genius to lead or make an idea work.
•    There are two types of smarts: FORMAL and/or SOCIAL.  It is proven that social is the smarts that will make you more money and get you further.

Asians on average perform better at math than Americans, but they’re not naturally smarter
•    I’ve been the victim of the incredibly smart Asian kid that ruined the grading curve in College
•    The average American can hold about 7 numbers in memory when quickly asked to memorize them.  Asians can hold 10 numbers in memory.
•    Asian children can count to 40 one year faster than Americans
•    This is a result of their language being structured more efficient to calculate math.  For more details read the book, it’s very fascinating
•    The fact that major Asian languages require less time to say a number and due to the fact the structure of the language is more suitable to add numbers, Asians have an advantage over Americans in mathematics.

“The lazy man freezes to death”
•    You don’t live to work, you work to live

Summer school is proven to improve performance in school
•    Students “unlearn” up to 25%-50% of their learning during the summer
•    Asian students study year round so they spend less time relearning old material
•    I’m putting my kids in summer school programs

Outliers are ordinary people who took advantage of opportunity
•    The opportunity could be time of birth, languages, culture and much more
•    Take advantage of the opportunities you have and create opportunities for those you don’t currently have

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REMEMBER OUR MILITARY!

Beautiful artwork to help us REMEMBER the sacrifice of our military. World War 2

My Grandfather fought in the Battle of Normandy.  He died before I was a year old.  Thanks Grandpa!  I live a great life because men of your courage dared to fight for something they believed in.  I work every day to have the courage to fight for a cause that will make my daugther’s life even better than mine.
Grandpa Galbraith