The cost of change is guaranteed, the upside is not.

0:00When you leave people alone, they tend to just get better at their jobs. So, let's imagine the business [music] like everyone's revenue here represents this line. That's your business, that's normal business that's happening. What I realized is that whenever I decide [music] to make a change in the business, I see about a 20% decrement or decrease in performance um from whatever that change is. So, I change a sales process, I change a leadership [music] process, I change an onboarding process, I change something that I have to train people up on something new. Now, even if that change is something that [music] I think is superior, I'm still going to have an immediate decrease in performance.

0:29What's the data research behind it? It's Alex doing this. Now, if I think that this improvement is going to make, let's say, a 5% improvement in the business, like I think it's going to, you know, improve our our closing rate by 5% or something like that, then I'm going to take a guaranteed 20% loss for a potential [music] 5% increase. Bad trade. How many months is it going to take me in order to make up for the 20, you know, 20%? [music] It's going to take 4 or 5 months, right? Now, here's the really fun thing is that on an alternate timeline, you have this thing, but [music] when you leave people alone, they tend to just get better at their jobs.

1:02So, you'll get the 5% improvement. [music] And so, what's happened is that I've actually created this rule, which is I need to see a 40% improvement that I think has a 50/50 shot at happening for me to make any change at all.