Leading Blog


« Be a Spark! | Leading Blog Main Page



05.19.17

9 Key Principles for Business & Life from Sam Zell

Sam Zell

B
ILLIONAIRE investor Sam Zell has put down on paper an account of the principles that guide how he does business in Am I Being Too Subtle?

He doesn’t claim to be self-made. He credits his parents with handing down to him values that have served him well in life. He is the son of Jewish immigrants who fled Poland in 1939 to avoid the Holocaust. “My parents were very disciplined and very focused on work and achievement, and they led by example.” His parents “never dumbed down the conversation for the kids.” Lessons were taught through examples and stories.

His parents provided Zell with a different perspective than his friends. They were given a bigger-picture orientation. As a result, he was “more comfortable standing apart” than he was trying to fit in. It was to be a defining characteristic of his life. “Conventional wisdom,” Zell writes, “is nothing more to me but a reference point.” But he notes, you can’t create your own playbook “unless you understand the rules of the game and play well within the lines. As long as you know where everyone else is, you can play the game.”

Below are nine of Zell’s key philosophies for how he approaches business and life:

1. Be Ready to Pivot
I never hesitate to pursue a new endeavor just because I haven’t done something similar before. I just use what I’ve learned that might cross over. I see myself as a frontline player, and that means being able to envision where demand is going to be, or where it won’t be—not just in the next five years but in the next twenty or thirty years. It means not sticking to assumptions that limit your opportunity. The fact is, I am eclectic, and the fun of my life is being able to gain access in new arenas.

2. Keep it Simple
I stay true to the fundamental truths: the laws of supply and demand; liquidity equals value; limited competition; long-term relationships. They offer a framework through which I view potential opportunity. Problem solving is my passion. Breaking issues down to their barest elements, simplifying them. Finding the fulcrum. It’s something anyone can learn to do. After that, experience makes the difference—doing it again and again until it becomes distinctive. Experience builds discipline and insight that sometimes allows you to see over the abyss before you step into thin air. It’s being risk aware. It is a matter of organizing your thinking.

3. Keep Your Eyes (and Mind) Wide Open
I rely on a macro perspective to identify opportunities and make better decisions. I am always questioning, always calculating the implications of broader events. If there’s one consistent theme, it’s that I’m always on the lookout for anomalies or disruptions in an industry, in a market, or in a particular company. Recognizing the psychology of market extremes can lead to attractive points of entry. Any event or pattern out of the ordinary is like a beacon telling me some interesting new opportunity may be emerging. If you’re a seeker of information and a serious observer, it’s all there to be learned. But with today’s access to an overwhelming amount of information, most of it drivel, you have to focus on what’s meaningful.

4. Be the Lead Dog
In my businesses, I like to be the lead dog, to control the “scenery” in every industry I enter. It means not being less than number two in any industry, and referable being number one. If you’re not the lead dog, you spend your whole life responding to others.

5. Do the Right Thing
When you’re in it for the distance, you do it right. Ethics are a cornerstone. I have always known that success for me would be guided by principles. For that reason, there are some deal I just won’t do. Everything I do is predicated on the assumption that there’s another deal. And the way you get to the next deal is to lay it straight. Sometimes my team argues with me—they can’t believe we’re leaving money on the table. But I want to create an environment where everyone wants to keep playing.

6. Shem Tov – A Good Reputation
In everything I do, I’m consistent, and I’m never tempted to something that’s at odds with my name. In business, people always want to know who you are—in other words, will you do what you say, will you make a reliable partner? Reputation is your most important asset.

7. Prize Loyalty
I believe loyalty defines your character. Do you stick with your friend, colleague, or partner when it’s not easy? Do you consider their circumstances as much as you consider your own? As you can imagine, for someone in my position, loyalty and trust are priceless commodities. And they go both ways.

8. Obey the Eleventh Commandment
Don’t take yourself too seriously. Ego and pride have their places, but when they are not self-regulated, they can be detrimental, if not debilitating. But for me the Eleventh Commandment implies something more. Simply put, it’s being the first person to laugh at yourself. To me, the Eleventh Commandment acknowledges that we’re all human beings who inhabit the world and are given the gift of participating in the wonders around us—as long as we don’t set ourselves apart from them.

9. Go All In
The minute you acknowledge that a problem is insurmountable, you fail. If you just assume there is a way through to the other side, you’ll usually find it, and you will unleash your creativity to do so. I equate this fundamental truth with an entrepreneurial mind-set. It’s tenacity, optimism, drive, and conviction all rolled into one. It’s commitment to get it done, see it through, make it work. In my world, I call that being an owner.

Zell advocates an owner/entrepreneurial mindset in business and life. “An owner is consumed with making the most out of what he already has. He’s all in. An entrepreneur is always looking for a new opportunity. He’s always reaching.” As he tells his grandkids, “Your responsibility is to maximize the skills you were given. But whatever you decide to do, invest everything you have in it—excel. What I’ve done is not the example I wanted to set; it’s the way I’ve done it that I hope you emulate, through focus, effort, and commitment.”

* * *

Like us on Facebook for additional leadership and personal development ideas.
* * *



Posted by Michael McKinney at 05:29 PM
| Comments (0) | General Business , Leadership Development



Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)






Copyright ©1998-2017 LeadershipNow / M2 Communications All Rights Reserved
All materials contained in http://www.LeadershipNow.com are protected by copyright and trademark laws and may not be used for any purpose whatsoever other than private, noncommercial viewing purposes. Derivative works and other unauthorized copying or use of stills, video footage, text or graphics is expressly prohibited. LeadershipNow is a trademark of M2 Communications.