“Speaking of Amway, what are YOUR thoughts on…?”

“Let’s look at all this in terms of mixing colors.  If ‘Creative Vision’ is yellow and ‘Practical Application’ is blue — we’re looking for green.  Everybody loves green.  It transcends ethnicity, gender, religion, religion, generation, and class.  An alternative, long-winded title to this book could be ‘If Nothing is Happening in Your Business Right Now, Mix Up Sumpin’ Green!‘” – JOEL A. FREEMAN, author of If Nobody Loves You Create The Demand:  A Powerful Jolt of Entrepreneurial Energy and Wisdom 

Over the weekend, as I had a few minutes to myself and considered the current state of affairs in the business, it occurred to me that this was a critical time in my business.  Perhaps only once or twice in my life has there been a better time to build a Quixtar/Amway business.  If that’s true — and I believe it is — then to waste this time would be the height of foolishness.  Now, whatever my shortcomings in life might be, I’d like to think that foolishness isn’t one of them.  So as I pondered things over the weekend it became increasingly clear to me that this is a prime time for all those who blog on the Quixtar/Amway business to be building their businesses, rather than being on the outside looking in.  Here are my three reasons why:   

1.  PERSONAL CREDIBILITY.  I don’t believe it is easy as some might think to be a thoughtful online commentator (in all honesty, I don’t think “critic” is an accurate portrayal of what I am trying to do online).  However, there is a sense in which only being a commentator on our business issues is easier than putting our own lives on the line to build the business while also working to bring about change in the areas that are important to us.  That’s one of the reasons why I believe the time has come for all Amway/Quixtar bloggers to be heavily invested in building their own businesses.  Theory is one thing, practical experience is quite another.  If we want to be taken seriously over the long-term we must be willing to demonstrate that we truly understand what it takes to build an Amway/Quixtar business, and also that we have the inner drive, character, stick-to-it-iveness, and leadership qualities to get it done — or our words will ring hollow and be worthy of little or no consideration. 

Charles Koch, CEO of Koch Industries, the world’s largest privately owned company, agrees.  In his book The Science of Succcess he stated:

“Chemist and philosopher of science Michael Polanyi argued that we only truly know something — that is, have personal knowledge — when we can apply it to get results.  Riding a bike, playing golf or chess are good examples.  Personal knowledge, or true understanding, involves converting conceptual knowledge into an effective tool for solving problems, handling new subjects and making discoveries.  Developing personal knowledge involves a personal transformation.  It requires learning a new framework and mental models, and then using them to work out concrete problems.  Personal knowledge is the result of integrating theory and practice…The process of discovery begins when we observe, often vaguely, a gap between what is and what could be.  Our intuition tells us something better is just beyond the range of our mind’s eye.  To build a culture of discovery, we must encourage, not discourage, the passionate pursuit of our own and others’ hunches…The genesis of this entire process is the development of personal knowledge that is passionately applied to solve a problem.”

2.  RETURN ON OUR INVESTMENT OF TIME AND ENERGY.  Some of us have said that we don’t want to invest our time and energy building the business until particular issues have been dealt with by the company.  The concern is that the company may be seriously impacted by government regulatory issues (such as in the UK and India), by civilian legal issues (such as in the court case in California), or by continued business issues (tool systems).  While I understand those concerns on one level, I honestly think that perspective is shortsighted on another level.  First, time is already being invested by many of us commenting online.  That time could just as easily end up being wasted, yet that hasn’t stopped any of us from blogging and commenting.  Second, if we are building our businesses in an honorable manner, the business and client relationships we’ve created during this period could easily be transferred to another business endeavor should such an unfortunate turn of events really occur.  It’s important to remember that people want to follow people of integrity and if we have interacted honestly and transparently with our business partners I believe the vast majority would trust us and follow us again if events were to force us to move our business elsewhere.  Thus, to me at least, the perspective that we could be wasting our time building our businesses today doesn’t seem to carry enough weight to overcome the other strong reasons for doing so. By the way, I must add, I think the odds of a business shutdown issue coming into play are incredibly small today.  I truly believe Alticor/Amway/Quixtar of late have been taking and will continue to take whatever steps are necessary (in some of the other areas of concern) to make our business just what they say they want it to be:  “The Business Opportunity Of Choice In North America” (and internationally).

3.  THE BUSINESS TRANSFORMATION.  Quixtar is investing substantial sums of money to recreate the credibility of this business in the marketplace (and also in the mind of the IBO).  Now I know no business is perfect.  But I doubt anyone could honestly say the company is not on the right track here.  If so, this is not the time to be sitting back idly.  It’s the time to be fully engaged with the business so that as the public profile and reputation of the business improves we will all have strong momentum to take advantage of it.  This is just common sense, but as we all know, common sense is not so common as one might think. 

On April 8th I posted “One of Our Best Opportunities Ever?” on this blog and spoke to this issue.  I honestly do believe this is one of the best opportunities we’ve ever had in this business to build a business that will not only be highly prosperous to us in the short-term, but also highly prosperous over the long-term as well — and one that will endure.  Thus, it naturally follows that the sooner get to I work on building my business the sooner I will participate in that short-term prosperity and share in its long-term benefits.  And, while I am working diligently to build my business, I can still express my beliefs and share my ideas online on this blog that I believe are important and critical to the business and appropriate for discourse.  That sounds like a heck of a good plan to me. 

I don’t know about you folks, but I’m getting on with building my business. 

What are YOUR thoughts on whether or not it’s time for all Quixtar/Amway bloggers to get on with building the business? 

written by Chuck Lia \\ tags: Amway, Business Transformation, Charles Koch, Joel Freeman, Quixtar

“It is well to read everything of something, and something of everything.” — LORD HENRY P. BROUGHAM 

“Read not to contradict or refute; nor to believe and take for granted; nor to find talk and discourse; but to weigh and consider.  Some books are to be tasted, others to be swallowed, and a few to be chewed and digested:  that is, some books are to be read only in parts, others to be read, but not curiously, and some few to be read wholly, and with diligence and attention.” — FRANCIS BACON

I am an avid reader, and I do mean an avid reader.  (And from my email correspondence with IBOFightback, it sounds like he is too.)  I have always read a broad range of books across multiple disciplines, but have a real passion for business, economics, theology, science, philosophy, and human behavior.  Oh yes, and sports, particularly tennis and basketball (my collegiate sports).  Since my college days, now going on thirty six years, I have consistently read over a hundred books a year.  When I was in my early twenties a close friend of mine convinced me that “a book worth reading is a book worth owning.”  As a result, I have an extensive library.  In fact, five years ago, before I moved to the Atlanta area, I donated some of my library to the county public library system – over 40 boxes worth!  (I guess that means a book worth reading isn’t necessarily a book worth moving!)    However, that still left me with well over twenty large (and very heavy) boxes of books to move to Georgia, books which now cover an entire wall.

I think everyone would agree that reading is a fundamental aspect of leadership.  Leaders are readers, and expanding our base of knowledge and level of understanding is increasingly important.  But in addition to reading books on topics of interest to us, I think everyone should also make it a point to read books on topics that challenge some of our strongest held beliefs.  Why?  To make sure we know what we believe and why we believe it, and to prove we can still defend our beliefs if challenged to do so.  If we can’t defend them, maybe we don’t know what we think we know.  

Unfortunately, some people are simply unwilling to read books or consider other media that challenge their beliefs.  They tend to only take in information from one or two sources.  However, if we are only willing to take in information from one or two sources, that’s not education, it’s indoctrination.  I think it’s far better to be open to new sources of information.  We might be amazed what we could learn.

Once a month I thought it might be a little fun and a nice break from the ongoing dialogue online to offer you my “Top Ten” list on a given topic such as books, essays, cars, and more, and then ask to hear from you on the same topic.  Obviously, this month’s “Top Ten” list is about books.  I hope you enjoy it — and take the time to add your own recommendations to my list.

Here’s my “Top Ten” list of “The Most Interesting Books I Read This Past Year” in order of their impact on me (as best I can discern).  Perhaps you might find a few of them of interest to you as well.

1.  The Reason For God:  Belief in an Age of Skepticism by Dr. Timothy Keller.  A new release and simply one of the best books I’ve ever read.  It is currently #13 on the New York Times Non-fiction Bestseller list.  Balanced in argument, winsome in tone, this is a book that can open the door to meaningful conversation on a worthwhile topic that should be carefully considered by everyone, regardless of your point of view going in.  Keller speaks once a month at the Harvard Club in Manhattan, New York, (a meeting place in NYC for Harvard grads, professors, and honorary degree holders), and this book came out of his monthly lectures there.  It will challenge you to “doubt your doubts” (I’ll let the book explain what that means) and to honestly consider and contemplate the issues Keller raises.  Dr. Keller’s fair-handed dealing with the topic has received strong and positive reviews in both religious and secular circles, including both Publishers Weekly and Library Journal, which is highly unusual.

2.  It’s Your Ship:  Management Techniques From The Best Damn Ship In The Navy by Capt. D. Michael Abrashoff.   The title is a little misleading.  The book is really more about leadership, but from a grassroots level.  Just a terrific, very insightful book.  For more background on this book please read my blog post “Grassroots Leadership” on March 13th in which I wrote at length about it. 

3.  Boys Adrift:  The Five Factors Driving the Growing Epidemic of Unmotivated Boys and Underachieving Young Men by Leonard Sax, M.D., Ph.D.  (Secondary Subtitle:  “A Doctor’s Plan To Help Our Sons Fulfill Their Potential”).   In this book Sax discusses what he calls “The Five Factors Driving the Decline in Boys.”  I won’t spoil the book by telling you much about the five factors, but the chapter on endrocrine disruptors alone is worth the price of this book.  This book will definitely have you thinking and is one book all parents of young boys (and girls, in my opinion) should read as soon as possible.

4.  Banker to the Poor:  Micro-lending and the Battle Against World Poverty by Muhammad Yunus, founder of the Grameen Bank.  Yunus and his Grameen Bank won the Nobel Peace Prize in 2006 for their work to alleviate world poverty through micro-lending.  His approach is simple and brilliant:  loan poor people money on terms that are suitable to them, teach them a few sound financial principles, and they will help themselves.  A fascinating, challenging, and very motivating read.

5.  The Science of Success:  How Market-Based Management Built the World’s Largest Private Company by Charles G. Koch, CEO, Koch Industries, Inc..  Written by a man who very well might be the most successful businessman you’ve never heard of, this book discusses how to use an understanding of human nature and behavior to create a culture of success in your business.  A bit deep at times, and for the most part not directly related to an Amway/Quixtar-type business — except on a corporate level — but a highly interesting read nonetheless.  It was through this book that I heard of the next book on this list. 

6.  Human Action:  A Treatise on Economics by Ludwig von Mises.  The author is from the “Austrian” school of economics and this book is essential reading for any supporter of free market economics (and as I said in my lead-in comments, the enemies of same).  The first 200 pages (of 900 pages) of this four volume book are heavily philosophical, but you cannot understand what von Mises is for, unless you understand why he is for it.   America economist and historian Murray Rothbard has aptly said of this book: “Every once in a while the human race pauses in the job of botching its affairs and redeems itself by producing a noble work of the intellect. . . . To state that Human Action is a ‘must’ book is a greater understatement.  This is the economic Bible of the civilized man.”

7.  The Essential Wooden:  A Lifetime of Lessons on Leaders and Leadership by John Wooden and Steve Jamison.  John Wooden is the renowned Hall of Fame basketball coach who led UCLA to 10 NCAA basketball titles in 12 years.  This book is a collection of Wooden’s opinions and observations on leadership, as well as perspectives on Wooden himself as a man and a coach as seen through the eyes of his former players.  As the back cover says, “It distills a lifetime of learning into a leadership playbook for the 21st century.”  That covers it pretty well.  Every page has several nuggets of wisdom that can help you in business and life. 

8.  Quiet Strength:  The Principles, Practices, and Priorities of a Winning Life by Tony Dungy.  This book, authored by Super Bowl Champion Indianapolis Colts Head Coach Tony Dungy, is one part autobiography, one part sports history, one part coaching technique, one part dealing with suffering, one part family life narrative, one part social commentary, and one part teaching on Christian living.  Dungy’s strength and dignity comes through on every page.  This is a book that can be read by the entire family — and one that should be.

9.  Uncommon Dissent:  Intellectuals Who Find Darwinism Unconvincing edited by William Dembski.  Although many of the chapters in this book are worth special mention, the best is the last, which is a reprint of a famous Commentary essay by former Princeton professor David Berlinski.  His arguments are rhetorically devasting and come from a non-religious point of view.  As much fun as Berlinski’s piece is to read, it’s the letters written in response to it and his responses to them that create a spectacular battle of the intellectuals – with Berlinski returning fire magnificently.

10.  In An Instant:  A Family’s Journey of Love and Healing by Lee and Bob Woodruff.  Former ABC World News co-anchor Bob Woodruff suffered a severe brain trauma as the result of a roadside bomb while covering the Iraq War in January 2006.  This book chronicles his recovery and what his wife and family went through as he struggled to survive.  My son also suffered a severe brain injury in late 2005, so I understood some of the issues the Woodruffs faced.  Yet I found their personal story to be incredibly inspiring and encouraging.  It also made me even more grateful for my own son’s unexpected recovery against all odds.

What are YOUR thoughts on the most interesting books you read this past year?

Coming in May’s “Top Ten”:  The Most Interesting Essays I Read This Past Year

written by Chuck Lia \\ tags: Bob and Lee Woodruff, Books, Charles Koch, D. Michael Abrashoff, John Wooden, Leonard Sax, Ludwig von Mises, Muhammad Yunus, Tim Keller, Tony Dungy, William Dembski

“Willingness to change is a strength, even if it means plunging part of the company into total confusion for awhile.” – JACK WELCH, renowned former Chairman and CEO of General Electric 

“The internet has been the most fundamental change during my lifetime and for hundreds of years.  Someone the other day said, “It’s the biggest thing since [the] Gutenberg [press],” and then someone else said, “No, it’s the biggest thing since the invention of writing.” – RUPERT MURDOCH, global media icon and owner of the Fox Network

“Doctors of [the 15th century] kept their secrets locked in languages their patients could not read.  To attack this citadel demanded a willingness to defy the canons of respectability, to uproot oneself from the university community and the guild.  Such a venture required as much passion as knowledge, and more daring than prudence.  To open the way, a man needed the knowledge of a professional and yet not to be committed to the profession.  He should be in the physician’s world, but not of it.” – DANIEL BOORSTIN, author of The Discoverers

In 1982, two Australian doctors, Barry Marshall and Robin Warren, discovered there was a bacteria that lived and grew in the stomach.  That bacteria, Helicobacter pylori, commonly called H. pylori for short, is now firmly established as the cause of 90% of duodenal (intestinal) ulcers and 80% of gastric (stomach) ulcers.  Now you would think that their findings would have been great medical news, if not incredible medical news, at the time.  You would think that, but you’d be wrong.  It took Marshall and Warren nearly two decades to get the medical establishment to even consider the results of their research, because the medical establishment was so absolutely sure the cause of ulcers couldn’t possibly be a bacterium.  The common medical wisdom at the time was that stress caused ulcers.  No one would even bother to hear Marshall and Warren out.  No one.  They couldn’t even get their research published in peer reviewed medical journals.  In frustration, and to prove his point, Marshall personally swallowed the Helicobacter pylori bacterium — and became very ill.  His point was made.  Finally a few doctors stepped away from mainstream medical thinking and began to take a serious look at Marshall and Warren’s research.  The end result?  Their research and studies were confirmed.  So well confirmed in fact that in 2005 they were awarded the Nobel Prize for Medicine for their remarkable contribution to medicine and the health of humanity in solving the ulcer problem. 

But here’s the intriguing question.  How many people had their ulcers go untreated, or treated improperly, for almost two decades because the establishment was unwilling to even listen to, let alone consider, another point of view on the problem?  Thousands?  Millions?  Far more?  

In light of Boorstin’s short medical history regarding 15th century medicine that I quoted above, I guess some things never change.  That’s sad, and unfortunate.  (As an aside, Marshall and Warren’s story kind of reminds me of the current intelligent design/evolution debate.  Have any of you seen the new movie by Ben Stein, “Expelled:  No Intelligence Allowed” that opened last weekend?  Very interesting movie, with similar challenges, but forgive me, I digress.)

Why has it been so difficult to initiate change in our business? 

I think one of the reasons is that change creates uncertainty, and uncertainty tends to make us want to remain in the status quo.  Yet, if the status quo shows flat or declining growth, what possible reason would there be for holding on to the status quo?  

One leader has said privately that another reason change is difficult to come by is that some leaders in the business have a conflict of interest.  So much of their income comes from the tool side of the business it is difficult for them to approach anything that may impact the tool side of the business with an unbiased perspective or without a lot at stake financially — and that’s understandable.  Some changes could have dramatic implications for their businesses and income. 

To be fair I have to ask myself, if I had a substantial income coming in from the tool side of the business, would I be able to put integrity first and think about what is best for all IBOs?  I’d like to think so, but I am not faced with that decision today.  I am not above this fray and I certainly don’t want to imply that I have every aspect of life nailed down and don’t have feet of clay.  I don’t believe all system leaders are evil, or remotely close to that, but I do believe some system leaders have allowed the income from systems to play too big of a role in the way things are done in the business.  Thus, I honestly believe system leaders have hampered the pursuit of needed change in the business.

Amway/Quixtar themselves have made change difficult by being unwilling in the past to truly face the realities of the business, particularly online in North America.  I have a sense that the UK issue was a real wake up call on that one though.  They finally realized that they couldn’t let something like the UK issue happen again, so it was time to review operations everywhere.  And it appears that is what they are doing.  I am convinced a lot of progress is being made in this area, but they still don’t seem to get the importance of the internet as a social network and how that network affects the population’s perspective on our business. 

So what is the answer to this problem? 

In my honest opinion, on one level, what we are doing here.  First, being open to candid dialogue and willing to have all of our beliefs and convictions about the business challenged.  Second, understanding the Japanese proverb, “You are not as smart as all of us.”  No one, no one, has all the answers.  Even Warren Buffett says that to be wealthy you only have to be right 51% of the time.  (And I sure like his 51%!)  The mindset in this business from upline leaders has often appeared to be ”when you need to know more, I’ll tell you.”  That is pure nonsense.

Some leaders in the business think that only they have anything worthwhile to bring to the discussion and that if we knew what they knew, we’d think the way they think.  (Kind of like the ulcer issue.)  I’ve heard that more than once.  Again, nonsense.  Heard of Google?  Yahoo?  You Tube?  Second Life?  Facebook?  My Space?  They were all started by people who said, ”We appreciate what you mainstream folks think about things, but we think we’ll trust our instincts on this one.”  I have a sense they’re glad they did.  Just because someone is relatively new to the business, or doesn’t yet have a large business, doesn’t necesarily mean they don’t have anything to bring to the conversation.  Who knows?  They may have a lot to bring to the conversation.  In fact, they might bring an idea or approach to the conversation that positively and dramatically changes the way things are done in the business – and benefits every IBO.

Kind of like Dr. Marshall and Dr. Warren.  

But how will we know if we’re not willing to listen to and consider their point of view, but instead think we have all of the answers?

Simply answered, we won’t.  

What are YOUR thoughts on why it has been so difficult to initiate change in our business in the past?  What do YOU believe we could do differently going forward, particularly in light of the overall business transformation underway today, to make sure we are open to dialogue on all fronts in the coming years?

written by Chuck Lia \\ tags: 2005 Nobel Peace Prize, Amway, Barry Marshall, Ben Stein, Business Transformation, Expelled: No Intelligence Allowed, Quixtar, Robin Warren

“The ancient Romans had a tradition:  whenever one of their engineers constructed an arch, as the capstone was raised into place, the engineer assumed accountability for his work in the most profound way possible:  he stood under the arch.” – MICHAEL ARMSTRONG

“Trust, but verify.” – RONALD REAGAN

PROVEN:  To establish the truth or genuineness of by evidence or argument.  – synonyms:  demonstrate, confirm, substantiate, verify

NOTE:  Please stay on topic with this post.  If you just want to rehash the same pro- and con- tool system arguments ad nauseum please do not waste your time and energy commenting on this post because I will delete your comments.  I am interested in one issue only on this post, how to bring a high level of honesty and transparency to the effectiveness of tool systems (not their income distribution).  I am interested in your ideas about how we as IBOs believe that specific issue could best be accomplished.  I intend to maintain the narrow focus of this post and will take all steps necessary to make sure that occurs.  All roads on this blog do not lead to Rome (read “tool system income” issues). 

What do you think tool system leaders mean when they say that their tool system is “proven?”  What does it mean to you as a field IBO when you hear them say that?  Would you like it to mean something different than you believe it means today? 

There is a somewhat (with a strong emphasis on “somewhat”) synergistic relationship today between Amway/Quixtar and the tool systems.  (I do realize the relationship is somewhat contentious as well.)  Our upline’s tool system is shown on our Quixtar opening web page after we sign onto the Quixtar site, which clearly highlights the fact that the two institutions work together on some level.  In virtually every plan shown to prospective IBOs, mention is made of the fact that IBO leaders earn income from the sales of Business Support Materials and for speaking at functions in addition to their Amway/Quixtar business income.  So even though the primary business being presented is A/Q, it is obvious (on some level, not fully or completely in my opinion) that income is also earned by IBO leaders through the sales of BSMs, function tickets, and speaking at functions.

However, there is one substantial difference.  A/Q is required to make disclosures about the performance of IBOs in its business, but tool systems are not required to make any disclosures about the performance of IBOs on their particular system.  Now I realize a strong point could be made that the A/Q business required disclosures don’t offer an accurate portrayal of the companies’ performance, particularly in their definition of an “active” IBO.  A more in depth discussion of that issue would be worthwhile in my opinion and should be a topic for discussion down the road.  (How could A/Q more accurately disclose the performance and earnings of the IBOs in its business?)  That discussion aside however, is there a compelling reason to ask tool systems to disclose on some reasonable level how IBOs are performing on their system?

I think there is. 

IBOs are asked and encouraged to invest in their businesses so they can acquire the knowledge and expertise necessary to build their businesses.  New and old IBOs alike are often told that “no one who is not on the system has ever built a large business.”  The obvious follow-up question is:  How exactly then are IBOs that are on the system doing?  You see, a “proven” tool system to me is not one that has “proven” it can promote the tool system so well that it has been able to sell large amounts of tools and draw large numbers of IBOs to its functions.  A “proven” tool system to me is one that can clearly demonstrate that a reasonable percentage of IBOs on its system have been able to qualify for and maintain particular levels in the business, while also becoming appropriately profitable along the way for their level of business achievement.  “Reasonable percentage” might be up for discussion, but I will say 1% would not meet my criteria. 

Some worthwhile questions worth answering and disclosing might be, “Of the non-Platinum IBOs on your system’s CEP for more than six months last year, how many made Platinum this year?”  Or, “Of the IBOs on your system who made Platinum (or Sapphire, Emerald, Diamond) last year, how many requalified or moved up a level or sponsored a new Platinum this year?”  Another would be, “Are all of the IBO leaders being introduced and allowed to speak from your stages accurately representing their current business level?”  For a system to be “proven” it would have to demonstrate to me that its leaders’ businesses were stable and had longevity — not just here one year and gone the next.  I personally believe that all systems should have to disclose the current pin level of any IBO leader allowed to speak at its functions.  I might not give the same credence to a “Diamond” that was really only a Sapphire today and hadn’t broken a new leg in five years, versus an Emerald who has broken a leg every year for the past three years.  But how would I know that if the systems are free to misrepresent or not even disclose the actual current business level of the speaker?  There are errors of commission in business, but there are also errors of omission.  This falls in the category of the latter.   

If systems are going to use the phrase “proven tool system,” shouldn’t they have to “prove” it on some level?  I think so.  If not, the phrase is nothing more than meaningless drivel, hype, and spin.  And if they are going to be allowed to work in partnership with Amway/Quixtar, shouldn’t they be held to a somewhat similar level of accountability?   

In the Book of Acts in the New Testament the Bereans were commended by the Apostle Luke because whenever they were taught or told something by their spiritual leaders they were “more fair-minded” and “searched the Scriptures daily to determine whether these things were really so.”  (Acts 17:11)  It’s interesting that the Bereans were called “fair-minded” because they believed it was important for them to clarify whether something was true or not.  That often doesn’t seem to be the case in this online dialogue.  Those of us who ask for more transparency and proof are often called by IBO leaders “critics who should find better things to do with our time,” even though I am in completely in favor of tool systems — but within the constraints of full transparency.  I have even had the word “enemy” used to describe what I am now because of what I do with this blog online.  That’s amazing really.  But the Bereans didn’t blindly follow anyone or any way of thinking, they verified everything — and were honored themselves for perpetuity in Scripture for doing so.

I think IBOs should be “fair-minded” as well, and take a lesson from the Bereans and request enough information to verify whether the things they have been told by their upline tool systems ”are really so.”  The resultant transparency, knowledge, and understanding would give IBOs a better sense of how to invest wisely in building their businesses — something Bridgett speaks so well to on these blogs — and hold systems responsible on some level to make sure that their tool offerings and functions deliver what they say they deliver:  “a proven way to build an Amway/Quixtar business.” 

What are YOUR thoughts on whether, and/or how, tool systems should “prove” their effectiveness?

written by Chuck Lia \\ tags: Amway, Quixtar, tool systems, Transparency

A LEADER’S DESTINY

A leader destined for success asks, “What can we do to improve?”  A leader destined for failure says, ‘That’s the way it’s always been done.”  Which are you? – ANONYMOUS

There is an interesting new blog thread going on over at “The Truth About Amway” site (www.thetruthaboutamway.com).  IBOFightback has posted a thread titled:  “Amway Upline:  Mentor or Coach?”  Great question with meaningful implications in the business.  BTW, I currently post over there under the name “Veritas” but am hoping to get that changed shortly to “Speaking of Amway” or simply my own name.

I’m really excited to see another theme/topic/issue oriented blog thread.  I honestly believe these kinds of blog threads could be a catalyst for positive developments in the business while also giving a voice to some IBOs who have no real place for their voices to be heard.  Head over to TTAA and join the conversation.

My next post will be up later today on the topic “How Could ‘Proven’ Tool Systems ‘Prove’ Their Effectiveness?” 

I hope you’ll come back later today and take a look.

written by Chuck Lia \\ tags: Coaching, IBOFightback, Mentoring, The Truth About Amway

“I am convinced that nothing we do is more important than hiring and deveoping people.  At the end of the day you bet on people, not strategies.” – LARRY BOSSIDY, CEO Allied Signal

“Strange is our situation here on earth.  Each of us comes for a short visit, not knowing why, yet sometimes seeming to divine a purpose.  From the standpoint of daily life, however, there is one thing we do know:  that man is here for the sake of other men.” – ALBERT EINSTEIN 

In my April 1st and April 3rd posts I asked my online readers a couple of questions about how we approach IBO training and what an ideal tool support system might look like.  Today I want to offer you my take on what I believe could be one of the most effective approaches to IBO training and then open the conversation up to you.  Allow me to say upfront that I am not an expert on this topic — or most others for that matter.  But I do have some thoughts about IBO training which are based on other personal endeavors where I do have a solid base of knowledge and understanding and where I believe I have a strong track record. 

One disclaimer.  I want to make sure that no one misunderstands why I am using one particular example in this post.  This is a business related blog.  However, to make the point I want to make I need to move into another arena that others might not find of interest or value.  I understand that.  Regardless, I am asking you to consider the overall argument I am trying to make with that example and to not get wrapped up in or distracted by the particular dynamics of that example — and thus miss the point completely. 

Thanks in advance for your understanding. 

What is the best way to train an IBO?  Systems were developed to create a streamlined and duplicatable way of training IBOs.  Yet it often appears that many IBOs don’t implement the system as effectively as they could for a number of reasons.  The flat volume levels in the business over the past ten years clearly demonstrate that something is wrong (or that several things are wrong).  Is there something we could do differently in training IBOs that would be more effective in creating leaders and more profitable IBOs?

I think the answer is ”Yes!” and I want to share my thoughts about what we could do differently with you.  When I talked with a Quixtar leader recently he told me that one of the things that he feels we fail to do is to model and demonstrate for our new IBOs how to do the things that would enhance their success in the business, and I agreed with him.  We give them CDs and DVDs.  We invite them to weekly business overviews, BBSs, and weekends.  We talk to them by phone and counsel them.  But there is one thing we tend not to do.  Generally, we fail to personally demonstrate how to make a sales call, how to invite a prospect to see the business, how to work with a new IBO, how to build relationships.  I know there are some IBOs who try to personally model and demonstrate these activities, but they are few and far between in my opinion.  We talk and we let others talk, but we don’t invest personal, hands-on time modeling these behaviors for our IBOs and creating relationship.

I am a tennis pro by trade.  I teach people how to play tennis.  The goal of my time with my students is to help them become confident and effective tennis players.  A big part of my job is to model and demonstrate for my students how to play the game.  That extends far beyond just our teaching time on the court together.  I must go also and watch them play their competitive matches so I can evaluate how they are doing, make adjustments, and then continue to encourage them so they can play even better in their next match.  I must share their successes and failures with them.  I also invite them to come to my tournament matches so they can see me play and see if I am modeling in my play the things I am telling them they need to do when they play.  They share my successes and failures just as I share theirs.  We hang out during the tournaments and have lunch and talk.  It doesn’t take long before they know I care about their success on the court and in life, and I know they care about mine. 

Last night I was talking with an ALTA men’s tennis team I coach.  This team is a new beginner-intermediate team made up entirely of men from India.  I’ve been modeling much of what I just discussed above with them over the past six months.  They asked me how I did over the weekend in the Alabama tournament.  When I told them it was gratifying to hear the men from both courts where they were practicing encouraging me with comments like “Way to go, Chuck!,” “That’s great, Chuck” and ”Awesome, Chuck.”  As I said, they care about me and I care about them.  And we all know it.  Working with tennis students is a continual process, and for the most part, very hands-on.  Thankfully, without seeming unduly proud, my ALTA and USTA teams, my T2 doubles teams, and the individual players I coach are some of the most successful in Atlanta.

I also lead a discipleship team at my church.  My church has one of the most successful discipleship programs in the United States with over 300 discipleship teams in our church.  The church is known nationally and internationally for the success of our programs.  The church’s discipleship program has one purpose:  “To develop mature and equipped followers of Christ.”  I am one of five discipleship team mentors in the church — men whose success as discipleship leaders has put them in a unique position to help other relatively new discipleship team leaders develop successful discipleship teams as well.  The responsibility of a discipleship team leader is to invest time in his team members and to help them become leaders who could some day lead a team of their own.  A year ago I was part of an eight member group from my church who went to Tanzania in East Africa to train 300 pastors in how to disciple their church members.  And we have another team going back there next week.

We call what we do “life-on-life” discipleship, and the program itself is called “The Journey.”  Life on life.  What does it mean?  Simply put, one man invests his life in the life of another man until that man is a mature and equipped follower of Christ and able to go out and invest his life in the life of another man until that man is a mature and equipped follower of Christ and able to go out and invest…..  You get the point.  We don’t let go of that man until we have helped him reach the point where we are confident that he can duplicate what has been developed in his life in the life of another man.  The women in the church do exactly the same thing.  The program has been so successful that churches from all over the world, including hundreds from other denominations, have adopted the program.

I’ve said all that to say this.  Developing mature and equipped IBOs and transferring leadership to them is more than just giving people CDs and DVDs.  It is far more than inviting them to opens, BBSs, and weekends.  It is even more than technique and attitude.  True IBO and leadership training is investing yourself ”life-on-life” in the life of another IBO.  It is putting all of you into the IBO.  It’s modeling, encouraging, failing, succeeding, talking, listening.  It’s calling on a prospective client together.  It’s calling his prospect for him when he is scared stiff (and maybe you are too!).  It’s sharing coffee at Starbuck’s with him/her with no agenda at all other than your love for him/her as a man or woman.  It’s sitting together at a weekend function out by the hotel pool and saying, “Let’s don’t talk about business right now.  Tell me about how you and your wife met.”  It is hitting a few golf or tennis balls together.  It’s stopping down at the local gym for a few minutes to watch his teenage son play basketball.  It’s being aware his son is down at the local gym playing basketball.  It’s meeting him at the hospital emergency room because his wife is out of town and he has a less than a year old son with a severe case of croup. 

It’s understanding that “the life of a man’s business is the business of a man’s life.”   

I’m convinced that success in tennis, in discipleship, in life — and in Quixtar/Amway — is all about relationship.  And that is done best, in my humble, but I believe accurate, opinion, by investing yourself “life-on-life” in the lives of your IBOs. 

What are YOUR thoughts on what the best way to train IBOs is?

written by Chuck Lia \\ tags: Discipleship, IBO Training, Quixtar, Tennis

“Men acquire a particular quality by constantly acting in a particular way.” – ARISTOTLE

‘What is left when honor is lost?” – PUBLILIUS SYRUS, First Century BC, Maxim 265 

The moderator of the IBOAI Blog posted the comment below on April 16th on its blog and I found it to be of interest.  I was aware of some of what he affirms in his comment, but not all of it.  My clarifications are in red to make the reading flow better and for understanding.  Here is his comment:

A couple of comments back Utah said, “Based on what I have read, it is true that Amway was founded as a competing business with Nutrilite, and it couldn’t be done now with current rules.”

Fact:

M&C (the distribution arm for NPI Nutrilite) changed the Sales Plan in 1956 without notice of any kind and later Carl Rehnborg ran an ad in the Wall Street Journal that he would not sell his products through M&C.  There were obvious problems between the two.

The American Way Association was formed in April 1959. There were no products, just an Association. The first product was not a competing product and they went out and sponsored a whole new organization of distributors.  They did not feast on their previous contacts, distributors, or customers of Nutrilite. It cost one dollar to join the Association and no one proselytized the former business.  Instead there was a two year moratorium in place and those who were with the AWA did not sponsor one former Nutrilite distributor from other lines of sponsorship.

So how is does what Orrin (Woodward) and Chris (Brady) did line up with Jay and Rich’s approach?

Further proof.  When Amway bought Nutrilite, Rich and Jay placed Joe Victor (Sr.) and Jere Dutt in charge to sort out the LOS because neither of them had sponsored one Nutrilite Distributor in their group!  While others had a Nutrilite sponsor and an Amway sponsor (after the two year ban) neither Victor or Dutt sponsored one Nutrilite distributor, not one, up to the purchase of Nutrilite in 1972.

So how does that compare to Orrin and Chris?

That is true Leadership.  They (Rich and Jay) rose above the Nutrilite business and created a new one without soiling the other business. They never filed a law suit, complained, or enticed others outside their LOS with tool money.  Instead they lived with integrity and displayed true Leadership.

written by Chuck Lia \\ tags: Amway, Chris Brady, Jay VanAndel, Jere Dutt, Joe Victor Sr., Nutrilite, Orrin Woodward, Rich DeVos

“For those who would joyously march in rank and file, they have already earned my contempt, for they were given a large brain by accident when a spinal cord would have sufficed.” – ALBERT EINSTEIN 

“Follow the path of the unsafe, independent thinker.  Expose your ideas to the danger of controversy.  Speak your mind and fear less the label of ‘crackpot’ than the stigma of conformity.” – THOMAS J. WATSON SR., former president of IBM

“The critic is the only independent source of information.  All the rest is advertising.” – PAULINE KAEL, former film critic for The New Yorker magazine

“Dictators ride to and fro upon tigers they dare not dismount.  And the tigers are getting hungry.” – WINSTON CHURCHILL

Let me ask you a question.  What do you think it means to be an “Independent”Business Owner in Quixtar/Amway?

What is a Quixtar/Amway “Independent Business Owner” anyway?  What does Quixtar/Amway/Alticor mean when they say we are “Independent Business Owners?”  What do the IBO system leaders mean when they say we are “Independent Business Owners?”  Finally, what do we as individual IBOs mean when we call ourselves “Independent Business Owners?” 

Now, having honestly tried to answer that question, here’s the critical follow-up question:  Is the answer to that question the same for all three parties – or vastly different? 

Websters.com offers the following definition of what “independent” means: 

in·de·pend·ent  [in-di-pen-duh nt] –adjective

As I have interacted with different IBOs in the business at various levels, including several high pins, multiple viewpoints have been offered on what it means to be an IBO.  A couple of IBO leaders have made it very clear to me that if IBOs don’t like how things are being done by the tool support systems, rather than complaining or venting their negative perspective online, they should “go do their own training thing or join another MLM.  After all, it’s your business.  Take responsibility for it.  But quit trying to change what we are doing.”  However, if an IBO believes that doing his own thing includes the right to talk with anyone (say online) or to pursue information about his business with anyone he chooses (privately or otherwise) he is seen as undermining the “principle” of crosslining.  For those IBO leaders apparently an IBO’s “independence” extends only so far.

A couple of other IBO leaders told me that they see this process of opening up the conversation about the business to anyone and everyone online as one that was long overdue.  Another told me that the secrecy about the level of tool system income has led to deep mistrust within the business and an “us” vs. “them” mindset that he believed could have easily been avoided.  As he put it, “As soon as trust is broken in one area, it begins to affect other areas, and soon there are multiple issues on the table, some of which unfortunately have no basis in fact.”  He felt the general unwillingness of the company and its IBO leaders to meaningfully engage in the conversation going on about them online until very recently had undermined their reputation and credibility tremendously — particularly in regard to tool income.  He added that “if the company and IBO leaders want to hold the field IBOs accountable for certain issues affecting the company and IBO leaders, the company and IBO leaders need to hold themselves accountable to a similar standard on issues affecting field IBOs, and that includes reasonable transparency (he didn’t define “reasonable” for me).”   

I agree completely. 

Do we as Independent Business Owners have the same rights as normal business owners?  Or is it a label only, with little or no ”independence” actually intended?  Does our view of ourselves as Independent Business Owners match up with the views the company and our tool system leaders hold of us as IBOs?  If not, where do you think we differ?  What kind of issues do these differences (if any) create for us and/or the company and tool system leaders?  How have these differences (again, if any) affected the relationship between IBOs, the company, and tool system leaders thus far?  Based on the differences you’ve observed, how would you suggest all three parties look at finding common ground so we can attempt to repair, if possible, the damage that has been done by the issues you’ve observed?  I’m interested in your perspective on things.

(By the way, I realize it might have been worthwhile to also discuss what is meant by being a “business” owner or a business “owner.”  But I am going to save that for another day.)

What are YOUR thoughts on what it means to be an “Independent Business Owner?”    

written by Chuck Lia

“There is nothing more difficult…than to take the lead in the introduction of a new order of things.” – NICCOLO MACHIAVELLI 

“If everyone is thinking alike, then somebody isn’t thinking.” – GEORGE PATTON

“The one who adapts his policy to the times prospers, and likewise that the one whose policy clashes with the demands of the times does not.” – NICCOLO MACHIAVELLI

This past weekend Diamond Mike Wilson and I played in a sectional tennis event in Alabama, so we had a lot of time to talk about matters of interest to us, both in the business and personally.  While Mike and I agree about many, if not most things in life, like most people, we have our disagreements.  Thankfully, we have not allowed those disagreements to infringe on our friendship too deeply, likely due to our shared Christian faith and respect for each other as Christian brothers. 

During our three hour drive to Birmingham from north Atlanta we talked about this blog and some of the concerns Mike had in being on the leading edge so to speak in this kind of a venue.  Mike is a strong believer in the principle of no business crosslining and thus he views internet blogs as vehicles that often undermine that principle.  He has no problem with personally hosting a blog for his own organization, but has reservations about sharing his business perspective in a public forum that is read by IBOs outside of his personal group.  While I don’t completely agree with his point of view in the open conversation we call the internet age, I certainly understand why he thinks and feels the way he does about the issue and respect his right to hold his view.  Let me add however, that Mike did tell me that our discussions this weekend helped him realize that he needed to be more proactive in communicating with his personal IBO organization about some of the topics and issues that he has seen raised online here and elsewhere.

Mike expressed his concern about the motives and agenda of many of the bloggers who comment online.  He wondered if participating in this discussion was little more than a waste of time that he couldn’t justify.  Like many busy business leaders he questions whether those who blog online have any real intention of building the business.  If not, why do they spend so much time blogging?  Also, why should he invest his time interacting with these people online if, when everything is said and done and the business has become everything the bloggers desired, they still likely won’t pursue the business?  Those are good questions.  What is the point of interacting with bloggers who are never going to build the business even if the business was, so-to-speak, almost perfect?  

Mike’s views on this issue reminded me of how important it is for me to make sure I have built a solid and profitable business so that I can retain my credibility in hosting this blog.  What sense does it make for me to share my thoughts day after day about how I think the business should move forward into the future if I don’t become part of the solution?  I committed myself to making sure my credibility isn’t undermined by failing to hold up my end of things.  I hope each of you will do the same.   

One other concern was raised.  In today’s contentious and litigious society, there clearly is a risk to Mike and any IBO leader in making statements in a public forum that might later be miscontrued or misrepresented and used to say things that were not intended by them when they initially said them.  While I believe that risk is minimal for Mike, nonetheless, it is a real concern (as recent court cases have made all the more clear) and one all business leaders must seriously consider. 

I have said all that to say this:  Any further online discussions in which I share the perspective and thoughts of IBO leaders will be offered anonymously.  I have been interacting with four Diamond and above leaders in the business regularly this past month from four separate lines of affiliation about some of the topics and issues of interest to IBOs, and I will continue to share their thoughts with you in my posts.  However, I will not use their names in my posts and will be extremely vigilant in keeping their identities private.  So after this post, I will no longer use Mike Wilson’s name in any post unless it relates to a non-business matter.  I also will not share any of the thoughts he has shared with me recently online for several weeks to make sure no one can ”connect the dots” in any discussion to him directly.  Obviously, I will still be talking with Mike from time to time (likely on the tennis court!), but I will not again directly attribute any comments to him.  In fact, from now on I am going to endeavor to present the views of several different Diamonds on each posted topic, rather than just one Diamond’s viewpoint.

Just so you know, this blogging process is going both ways.  There are several high pin IBO business leaders who have let me know they are following the dialogue on this blog closely, so your thoughts and ideas aren’t going unnoticed.  That is why it is so critical for our ongoing dialogue to be intelligent, well-reasoned, and respectful.  Polarizing behavior doesn’t serve the interests of IBOs at all and tends to move people toward other communication channels.

The question I have for you today relates to the crosslining issue that concerned Mike so much.  The Quixtar Rules of Conduct speak directly to what kinds of activities constitute crosslining.  However, it has become increasingly clear that certain aspects of the internet age, including blogs like this one, may require a reevaluation of the reasons behind the crosslining rules.  So here is the question for you today:

What are YOUR thoughts on how Quixtar and Amway might reevaluate, and perhaps even reconsider, crosslining rules in light of today’s “free flow of information” and “open conversation” internet age? 

(By the way, several of you asked how the tournament went over the weekend for Mike and me.  Friday’s matches were rained out when a Noah-like thunderstorm/tornado weather front came through Birmingham and wreaked havoc on everything.  As a result Mike and I had to play four matches on clay on Saturday.  We started at 10:30am and played almost non-stop until 9:15pm.  By the time we got back to our hotel at 11:10pm after dinner we were so worn out and sore we had a hard time sleeping that night, particularly because we were so worried about cramping. 

Mike had a great singles win in the first round over a high quality opponent and eventually lost in the singles semifinals to the #1 seed, who was the #2 ranked player in the South in 2007 [Mike was ranked #28 in the South for 2007].  I lost to the same player in the finals on Sunday in a third set tiebreaker after knocking off a highly regarded player in three sets in the semifinals [I am ranked #14 in the South for 2007]. 

We had two very tough doubles matches on Saturday, both of which had tiebreaker sets, even though we won both matches in straight sets.  In the finals on Sunday afternoon we played the #1 ranked team in Alabama.  We lost in a third set tiebreaker, but had match point on our serve in the final tiebreaker.  It was a very close match with a high level of play, and a lot of fun for both teams.  So all in all, a decent weekend of tennis, and a great way to kickoff the 2008 season.  Mike and I agreed when we got back to Atlanta that it was a really fun weekend and we’re look forward to another ”tennis road trip” like it soon.)    

written by Chuck Lia \\ tags: Amway, crosslining, Mike Wilson, Quixtar

“One must learn by doing the thing, for though you think you know it, you have no certainty until you try.” – ARISTOTLE 

Many times over the years I’ve heard someone say, “But even if you take only one marble from the jar, all the other marbles in the jar move too.”  That’s certainly true in Quixtar.  Often dealing with one issue in the business impacts other issues, often in ways that were not initially foreseen.

During one of my discussions earlier this week with N21 Diamond Mike Wilson he told me a story about one area of the business where he believed the training system had failed IBOs and how that failure has now led, so to speak, to other marbles in the jar moving as well.  Without getting into all the details of the story, Mike mentioned that for the past three decades most IBOs have led with the business, not the product; and with sponsoring, not retailing.  The business presentation as commonly presented by most systems states that we create our customers primarily from people we show the business to who decide not to join us. 

Now Mike sincerely believes that to develop any real momentum in the business you must show the plan at least 15 times a month.  He’s confident if you do that then 3 or 4 prospects will likely decide to become IBOs and the other 11 or 12 won’t, so in theory some of them should become customers.  However, Mike believes that premise has a major problem. The problem?  The tool systems have not been teaching their IBOs how to turn those who say “no” to the business, into customers.  Unfortunately, it has not been given the priority it deserved.  So while in theory it sounded great; in practice, it seldom happened. So we have ended up generally with a personal consumption model and very limited retailing.

The primary consequence?  A staggering loss of business volume and income.  The IBO was face-to-face with a potential IBO or client, yet he/she often failed to follow-up on the client side and help some of them who didn’t choose to pursue the business to become clients.  Why?  Mike believes it is because system leaders, himself included, haven’t modeled the process for their IBOs, nor treated it as a critical part of presenting the business to the prospect. 

As Mike reminded me, if only 1 in 3 of those who turned down the business became a customer, the IBO would create nearly 50 new clients a year (based on an IBO showing the plan 15 times a month).  If those clients purchased just $30 at retail per month that IBO would have an additional $1,500 in monthly retail volume at the end of the first year, a potential extra 500PV or so a month per IBO pursuing this approach.  The increase in volume would be enormous.  As the “Big Apple” knows better than any of us, that can really add up over time and become quite profitable.  The PV/BV lost by failing to pursue this potential source of business is very substantial.  If captured that volume would significantly enhance IBO net profitability and achievement — as well as the reputation of the business.  Keeping that in mind, it might be helpful for Quixtar University and the tool systems to work in partnership to create a proven and effective way to help IBOs learn how to transition the prospect into a client.   

A secondary consequence in my opinion? The marbles in the jar begin to move.  The failure to move products to customers creates various pressures on the business, the company, and the tool systems — legal and otherwise — and distorts the importance of certain sources of income in the business, including system income.  Today we find parts of the business moving toward a retail centered, lead-first-with-the-product paradigm.  But the reality, Mike believes, is that most people don’t like to sell.  In fact, most people have a built-in aversion to selling.  During our discussion I mentioned to Mike that I find it intriguing that the majority of new Platinums and higher pin level award earners appear to be either of Indian, Asian, or Hispanic ethnicity — groups that historically don’t look down on the sales industry, sales endeavors, or salesmen; but in fact, value them.  Mike was convinced that if the business didn’t have something worthwhile to offer every ethnic group, it became less of a business for all ethnic groups.  I certainly agree with him on that.

As “rdknyvr” mentioned to me yesterday, the new Health Sales Kit may be part of the solution.  By all accounts it is nothing short of fantastic.  Beyond that, I am convinced that IBOs who are not comfortable selling could still lead with the business and be very profitable and effective if they made it a high priority to focus, after showing the business to a prospect, as much on turning that prospect into a customer as they do on encouraging them to become an IBO.  I think that was Mike’s point too.  It is a valid one in my opinion. 

Modeling is the critical issue.  We can tell our IBOs what to do, but it would be even better if we modeled it for them.  I am a tennis pro.  Mike is an ex-tennis pro.  We both know that it is not enough for us to tell our students how to do hit a particular stroke, or what strategy to use at a specific point in a match.  We know we also have to model it for them by inviting them to watch us play in tournaments and then critiquing our match play (even if we don’t win!), and by watching our students play in tournaments and critiquing their match play as well.  Then we really begin to make real progress with our students.  The same would no doubt be true with IBOs. 

However, as Mike would likely remind us, it has to be modeled by everyone – by all business leaders and all IBOs – and that includes Mike, me…….and you.

What are YOUR thoughts on how IBOs could be more effective in turning prospects who have turned down building the business into clients?

In my next post:  Mike’s specific concerns about those who blog online about Quixtar and Amway (and that means me and you!).

To follow:  1) What Mike thinks is missing in the US; 2) what it means to be an independent business owner; 3) the value of tool systems; 4) a discussion on tool system income. 

written by Chuck Lia \\ tags: Amway, Mike Wilson, Quixtar, retailing, tool systems