How To Run A Business Successfully – Robert Kiyosaki [FULL Radio Show]


(upbeat music) – [Narrator] This is
The Rich Dad Radio Show The good news and bad news about money. Here’s Robert Kiyosaki. – Hello, hello, hello. This is Robery Kiyosaki,
The Rich Dad Radio Show, the good news and bad news about money. And of course that’s the
oldie by Barbra Streisand. People who need people
because the question is what is the hardest thing
about business and life? People! That’s the hardest thing there is. I can’t imagine anything harder. That’s when I meet people who
are totally self-employed. I got a friend, he has no
employees, it’s just him. He can make money all on his own. He’s a one man tycoon. He’s the luckiest guy I know. He doesn’t need anybody. But the moment you enter business and you start depending upon people, it’s a whole different world. So anyway, this is Robert
Kiyosaki, The Rich Dad Radio Show and welcome to the program. We have a very interesting program. It’s called “Loonshots”, it’s
about a book just released. It’s Safi Bahcall, is that
how you pronounce it, Safi? – [Safi] That is. – Oh, thank you. And it’s how to nurture the crazy ideas that win wars, cure diseases,
and transform industries and as far as I can tell, the book is kind of
about people, isn’t it? – [Safi] It is about people. It’s about what can you do
if you’re inside a team, or a company, or even a nation to encourage those crazy ideas that they’re often overlooked
and they’re neglected, but those are the ones that
can transform your business. – Good, any comments there, Kim? – Well, I just want to introduce Safi ’cause Safi, a lot of times what I say is business would be so easy if it wasn’t for people (laughs). But Safi, you have quite the background. You’re second generation
physicist, a biotech engineer, have tons of experience in what you do, an author and speaker, and your book just came out a few months ago. You also co-founded a
biotechnology company and were the CEO of that for 13 years. So you have quite the background, and now you’re working with
all sorts of organizations imparting your knowledge
and your principles of Loonshots into their business and one of the things I love is you know a lot of
organizations, they start out, and they have these wild, crazy ideas, and then they succeed,
and then all of a sudden everything gets stagnant (laughs). So what is Loonshots? – [Safi] Well, let me start with the word which is, everybody knows
what a moon shot is. Moon shot is a big goal, or a destination, something like curing
cancer, eliminating poverty. But if you look back at
history, the big ideas, the ones that really change the course of science, business, or history, rarely arrive with blaring
trumpets, and red carpets, dazzling everybody with their brilliance. They’re usually neglected or dismissed and their champion’s written off as crazy and since there wasn’t a good language, a good word for that in the English language, I made one up. I called those loonshots. And the reason those are so important, is that if you look,
whether it’s in the military as we were just talking
about before this call, or in businesses, those
ideas that can save a business, can rescue
a struggling business, or can give birth to a new one, are almost always the ones
that are written off as nuts. The people behind them are written off oh, there’s no way this
could ever work, and so on. And that’s why it’s
important to understand, how do we think about these loonshots? How can we design our
teams, our companies, or even our nations to encourage these kinds of crazy ideas even better? – So let me (mumbles) the part I liked about the, as
far as I got into your book, you talk about water
and those three phases, and at one is all ice, and
then second is on the edge, that’s where you have a
combination of water and ice just before it freezes
or it goes all water and are you saying that
the edge is the best where you have some ice and some water? Or a lot of times what I see in organizations, they’re too tight. They’re so bureaucratic, they can’t move which is all ice, and
some are so loosey-goosey, it’s all water and
there’s no productivity. Is that kinda what you’re saying? – [Safi] Yeah, that’s exactly it. As we were just talking about earlier, why is it that teams or
companies suddenly change from embracing wild, new ideas
to rigidly rejecting them? Just like, as you mentioned,
the glass of water will suddenly change
from liquid to solid ice and often you see that in a
glass of water that happens as you lower the
temperature, you have these molecules slashing around happily and then all of a sudden they line up as you cross 32 fahrenheit. – And I call that, you know,
the bureaucracy sets in and there’s multi layers
of middle managers and everybody’s got to have
an opinion and nothing happens so it goes from a very
free-flowing company to a, what would you call it? Just this corporate structure bureaucracy is that kind of what you’re saying? – [Safi] Yeah, it goes to being very rigid and the reason, in science that’s called a phase transition and those are very important to understand because once you understand them,
you can begin to manage them. For example, you can,
and people talk about culture, culture, culture all the time and when I first started out as a CEO 16, 17 years ago, I read
everything I could find. It was all about culture,
culture, culture. But it just seemed very squishy to me. A lot of soft psychology, and I was looking for
some more hard science. And that’s kind of how
I got started on this. – So Safi, you know, you’re a
second generation physicist. So you look at organization
from the science side and you know the big word is
culture which is human side, how do the two, how did that
affect, being a scientist, how did that affect your
looking at organizations with human beings who
are squishy, and morphis and they’re all different? (all laugh) – Squishy and morphis
– No, that’s a great question. – [Safi] You can think of culture as the patterns of behavior that you see. You can think of structure as those small changes in organization that underlie those patterns of behavior. That drive those patterns of behavior. Here’s kind of a crazy analogy. Think about a glass of water. When it’s warm, the
molecules are sloshing around and when it’s cold, when it’s freezing, the molecules are locked rigidly in place. Totally different patterns of behavior. – Same molecules. – [Safi] And it’s exactly
the same molecules. And in fact, as you lower the temperature, why do they suddenly change? It’s the same molecules,
and there’s no CEO molecule with a bullhorn saying
everybody slosh around. It’s 33 Fahrenheit. No wait, everybody line up rigidly. They just do it. – So let me repeat this, because I think what you’re saying, because I haven’t had a chance to read your fabulous
book “Loonshots” here ’cause it’s a problem we all face anytime you deal with people. So it’s in between there when you have part water and part ice,
is that what you’re saying, is the most optimum
productivity for organization? – [Safi] Absolutely. You can think of culture as
those patterns of behavior structured, those things like the small change in temperature that drives the change
between these two phases. Now if you’re a big company,
if you’re a large company, or a military, you need both. You need the embracing, wild new ideas, sort of that liquid, crazy phase, and you need the rigid
discipline and execution of directing millions
of soldiers in battle, or delivering your products
on time, on budget, on spec. – Amen. – [Safi] And the…exactly. And the only way to do both, the only way a system can be in both those
phases at the same time, by the way, I should say the every now and then I talk to some folks and someone will raise
their hand and they’ll say what about a slurpee? (all laugh) Okay, just for the record,
a slurpee is a liquid, kind of a little bit of a
disgusting, sugary liquid in which there are
suspended blocks of ice, but they’re rapidly melting. If you wait five minutes,
– So that’s – [Safi] it will be all liquid. – Right that’s, but I don’t
know if you know this, but 7-Eleven now has, you can, they’ll home deliver slurpees to you. (all laugh) I don’t know how they’re gonna do it. They have to freeze it or
something to get it to you. But that’s
– That’s right. – [Robert] They just
announced that yesterday. (Robert laughs) – [Safi] But if you’re
trying to build a business, or if you’re a military
trying to win a battle and stay ahead of your competitors, you need to do both. You need to come up with
those crazy, wild new products before your competitors do, or in the case of the military
before your enemies do, and you need the rigid
discipline and execution to turn those concepts into real products that you can deliver that skill.
– And I said this – [Robert] Earlier, is that a lot of times when organizations
mature, they turn to ice. They get bureaucratic, they got so many layers of management, and so many layers of
approval, nothing gets done. Would that be the ice phase? – [Safi] That’s exactly right. As you increase size, there’s a tug of war acting on each of
those…in a glass of water, there’s a tug of war one
force one’s molecules to run around and be free,
that’s called entropy, that’s just a fancy word
for run around and be free and the other wants them
to lock rigidly in place. That’s called binding energy.
– Centrally. – [Kim] So what if you’re
in an organization, and you have a wild idea and they say, oh, we’ve already tried
that, no that’ll never work. How do you come up with, when
you’re in an organization, a large organization,
even a small organization, and your ideas are getting shot down? – [Safi] People inside
large organizations, even small organizations
need to understand and start with this concept
that there are these two different ways of working. They’re two different dynamics. In one case, you want to maximize risk. If you’re trying new things, you want, actually, to fail a lot. If you’re not failing a lot,
you’re not being crazy enough. You’re not pushing the envelope enough, and your competitors might be doing a better job at that than you. You want to fail as much as you can, you want to try things on the edge so that you don’t get surprised by your competitors with something new. At the same time, you need the discipline. So if you’re inside a company, and you’re on one group or the other, it starts by understanding
that both sides are important. I call it love your artists
and soldiers equally. – So that’s what I was
waiting for you to say. Who’s your artist and who’s a soldier? – [Safi] Artists are the
creatives, are the designers, are the engineers coming up
with the wild, wacky new ideas. – Steve Jobs. – [Safi] Exactly. And they love their new ideas. It’s like a beautiful baby to them. The soldiers are the
ones that are responsible for delivering those things on time, on budget, on spec, and they hate risk. They want things done on time, on budget. Those are the people who make the money. The artists are the
ones who spend the money and there’s always, there’s
always conflict between the two. – Yes, yes. – [Safi] And you have
to start from the top and understand that you need both, and you have to love both equally. Just like if you’re a parent. Let’s say you grew up in the military and you have one kid that
wants to be a soldier and one kid that wants to be an artist. You have to love both equally. You don’t want to create sibling rivalry. – But that’s just an
important point to understand whether you’re a soldier and an artist and especially if you’re
running the company if you’re the CEO and you’re the soldier and you’re having all these
artists running around and you’re gonna keep
shooting down their ideas is what you’re saying,
you’ve got to really recognize who the players are. – [Safi] Right, and this
goes against a lot of kind of conventional wisdom and stuff you read in business magazines. For example, Steve Jobs. There’s this myth that he was
sort of the ultimate artist and when he led like that, and he did lead like that in his first time starting a
company, it was a disaster. So when he was in his 20s
and his first stint at Apple and he said, oh we’re gonna
all work on a Macintosh now and all the people
working on the Macintosh are doing the wild, new,
artistic, creative thing and all you people doing the Apple 2 franchise, the Apple 3 are bozos. It was incredibly demotivating. It created incredible hostility. The people working on
the franchise product, which brought in 90, 95% of
the revenue of the company got buttons with pictures
of Bozo the Clown and a red sash and a circle
– Oh my gosh. – [Safi] saying, “we’re not bozos.” – Oh my gosh. – [Safi] And the hostility he created between those two groups was so great that the street between
their two buildings was known as the DMZ, the demilitarized Zone.
– Wow. – [Kim] I never knew that. – [Safi] And people started – But he was also pretty,
a tough guy too, wasn’t he? – [Safi] He was, and that…exactly. And that wasn’t good. When the Macintosh
launched, it was a flop. They said you know it’s too hot, it would overheat, it was too slow, and people didn’t buy it. It was great publicity,
but it was the flop, and then the franchise tanked, and then Apple started
heading for bankruptcy. And that’s why Jobs was
asked to leave the company. When he came back 12 years later – After starting Pixar. – [Safi] After starting Pixar, and after starting the
next computer company, he learned a lot of lessons along the way, and when he got back
he appointed Jony Ive, one of the legendary product
designers of all times. And if you have Apple products,
designed by his group. – Right. – [Safi] And then he brought
in another guy named Tim Cook. In his previous job, he was called the till of the hun of inventory. And if there’s a better name for a soldier inside a company, I don’t know it. – So that’s the discipline
there in the soldier side with Tim Cook.
– Exactly. – [Robert] So you gotta have both. – [Safi] And he learned to lead by loving his artists and soldiers equally and when he died, who took over? It was not the ultimate artist, it was Tim Cook, the ultimate soldier. – Correct. Once again we’re talking to Safi Bahcall, his book is called “Loonshots”. He’s a second generation physicist. He’s a biotech engineer, he’s an author and a speaker and he goes to the greatest
schools and all that. He’s a friend of a friend, Amy Edmondson, Dr. Amy Edmondson, Professor
of Business at Harvard. So anyway, it’s really
interesting talking to you, Safi, and then when we come back, we’re gonna go into more my territory is you talk about, you’ve been saying that the military is now
starting to talk to you about how to, let’s say, restructure, maybe re-culture the military. That would be interesting,
’cause I went to Military School and served six years as a marine pilot and so that’s a whole different culture than the civilian culture, so
we’ll be talking about that. – We’ll also be talking about, Safi, I’d love to when we
come back talk about the relationship between
productivity and politics ’cause there’s so much
politics in business these days that sometimes it stifles productivity so I’d love your input on that. – [Safi] Absolutely. – So we’ll be right back, thank you. Welcome back, Robert Kiyosaki
The Rich Dad Radio Show, the good news and bad news about money, and you can listen to The
Rich Dad Radio Program anytime, anywhere on iTunes or Android, and all of our programs are archived at richdadradio.com. We archive them because repetition is one of the best ways to learn. If you listen to this
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especially with this program, it’s got friends, family,
and business associates, people, living, breathing people, to listen to this again and discuss your relationships
inside your company. We’re a family. Our guest today is Safi Bahcall. He is second generation physicist, biotech entrepreneur, author and speaker. The book we’re talking
about is “Loonshots”. How do nurture crazy ideas that win wars, cure diseases,
and transform industries. So we’re talking about
the three things I like at the start of his book,
there’s three phases, you know water, you have
ice, you have water, and then I mean you have ice and then you have ice and water, a slushee, and then it turns to water. And many times the organizations, they’re either too tight, they’re iced, or they’re too slushy, they’re too watery, and nothing gets done. So any comments, Kim? – Well as I said at the start of the show, I always say business would be
easy if it wasn’t for people so this is a great book,
“Loonshots” because Safi, one of the things I
love the point you’re making about there’s a balance of productivity, politics, and incentives. And anybody that’s owned a company knows every company has productivity issues, politics, and they deal with incentives. So how do you look at that? – [Safi] Well, it goes
back to this sort of culture versus structure. If you create a structure where you celebrate and reward rank, the culture that you’re
gonna drive is politics. Everybody’s gonna be sort of elbowing their neighbor to get ahead. And that’s terrible for
nurturing and promising new ideas because everybody’s gonna be shooting down their neighbors ideas. So if you celebrate rank, you create a very political culture. – So rank being seniority, how much – [Safi] Exactly, exactly. If you reward people based on their level, you will get a political culture which will be terrible
for nurturing new ideas. If, on the other hand, you
reward people based on results, based on intelligent risk-taking, you will get a very innovative culture. So that’s how structure can drive culture. There’s actually a cliche in business. Culture eats strategy for breakfast. So what I’m saying is structure
eats culture for lunch. (Kim laughs) – What was that again? What was that again?
– I like that, that’s good. – [Safi] Well there’s a cliche that culture eats strategy for business. A lot of Intra-capitalists and other people like to
say that sort of thing, and what I’m saying is structure
eats culture for lunch. – So structure is the key over culture. – [Safi] Exactly, so small changes in how you incentivize people and how you reward people, and how you design your
teams and companies that will drive the patterns of behavior that you see, just like a
small change in temperature can change a glass of water from being totally fluid to totally solid. – And one of the things
you say about incentives which I thought was fascinating, often people are sucking up to their boss, to their manager, they’re sucking up to the person who they think
is going to give them the incentive, the raise, the promotion, and you had this idea
of you bring somebody from the outside in who does incentives, who only comes there for
a short period of time so people can’t, aren’t wasting their time through politics of doing, you know, sucking up to people in
order to get a raise. You have somebody from
the outside come in. I think that’s fascinating. – [Safi] Exactly. It sounds like a crazy idea, but take managers out
of the reward decisions. Out of the promotion decisions. It seems bizarre. It seems crazy. Like oh, I have these couple employees that report to me, of course I’m gonna decide who gets promoted or not. But actually, some of the
best companies in the world, let’s say Google, or even McKinsey, they take the managers
almost entirely out of it. What does that do? Well, how do those associates
who are working for them or their employees, or their reports working for them get along? They don’t spend their time
lobbing their boss for promotion ’cause their boss isn’t
responsible for the promotion. Instead, the boss will be interviewed along with their people on the left and the right of them, their clients, their customers, so they just focus on getting their job done
and collaborating well. So that’s one way to reduce politics is take managers out of the equation. – Good. So you know, I’ve seen so many
companies just turn to ice. The bureaucracy just gets horrifying. And I’m talking to middle manager, after middle manager,
after middle manager. Each with their territory,
each with their own agenda, each with their own, I don’t know, priorities in life, and nothing gets done. That’s what drives me crazy. But anyway, you’re gonna start
work with some the military, the army, navy, and possibly, I mean army, navy, air force, possibly. What is the difference
between a military culture which I came out of, and a corporate culture, civilian culture? – [Safi] Well I think
what’s fascinating to me is how similar they are. And the folks that I’ve
talked to in the military who’ve reached out really just recently after reading this book
have been reaching out with an incredible
curiosity and just general genuine interest to learn. It’s actually really refreshing. In fact, I find the folks
that reach out to me from the military often
have a far better attitude towards learning about
leadership and management than the folks in the corporate world who think they’ve got it all figured out. And they reach out for an extremely important reason, for our security. For national security. And that’s because you don’t want to be putting troops on a battle field, and all of a sudden be surrounded by machine-learning robots
that wipe them out. The nature of war is
changing enormously fast. And in prior military,
you know, in the maybe 20-30 year, at the start of
World War II for example, we were far behind our
enemies in technology. The Nazi Germany had these
things called U Boats, these submarines which
we had no answer for, and we’re strangling the Atlantic shooting down ships faster than we could build them every single month. Their planes were better
than anything that we had in our, in the allied air forces and these two German
scientists had discovered this thing called nuclear
fission, splitting the atom, which put Hitler within reach of the most dangerous weapon ever created by mankind. So we started behind
in the last world war, but fortunately we came up with a system for mobilizing the nation’s
scientists in time of war for innovating astonishingly fast and we caught up and
then exceeded our enemies and that allowed, that
was incredibly important in turning the course of that last war. But that was 70 years ago. The pace of technology has changed. Now we may not be so lucky. Now if war breaks out
and we’re surrounded by machine-learning robots annihilating our soldiers, it’s too late. And so for extremely good reason, the army has had their
biggest reorganization in 30 years, 40 years that created
this army future command now centralized in Austin, Texas to try to figure out how can the army increase the pace and
scale at which it innovates to stay ahead of the curve? To stay ahead of our enemies? And it’s an incredibly important time and they specifically want to understand how do we nurture those
ideas that seem crazy, but turn out to be incredibly important? – And what suggestions to you have? – Yeah, that’s a huge
task, oh my goodness. – [Safi] Well, I’ll give you an example which I actually start
the book with and in fact, it really started this whole book was when I was asked to work
with President Obama’s council of science advisors
on national research, and the guy stood up the first day and said, “your job is to write “the next generation of
the Vannevar Bush report.” You know, at the time
I was a business man, I was running a publicly traded company, I didn’t do a lot of history
reading or science policies and I had no idea who Vannevar Bush was, or what his report was. So I went back and he was the guy who created a new system in the military. He was a Dean of Engineering at MIT, he came in, he had a meeting
with President Roosevelt, with FDR and said, “look,
we’re gonna lose this war.” It was a 10 minute meeting. He said, “we’re gonna lose this war. “Our technology is too far behind “and the military will
never catch up in time.” It’s like you mentioned, they’re frozen. They’re stuck. It’s all the middle managers
who quash new ideas. So he created a new system. He separated. He created a new group
within the federal government which was full of wild
scientists and crazy scientists, and they just kept coming up
with these crazy new ideas, many of which failed, but some of which were incredibly important. And that’s the kind of
thing, I think we’ve lost our way a little bit
in the last 50 or so years inside some of our national organizations, and that’s the kind of thing
we want to try to bring back. How do we create that sense of urgency? How do we create the separate groups, understanding that we
absolutely need both? We need that tight discipline to direct millions of soldiers in battles, just like companies need
the tight discipline to deliver products on
time, on budget, on spec. But we also need those crazy ideas and a completely different
system and environment for nurturing those ideas that
might become very important. – Amen. Anyway, you know the thing that I realize, I went to military school academy, and then flew for the Marine Corp, we had extreme discipline, but we also had extreme flexibility. You know as pilots, we flew
in formation we went in, but once the shooting started, we were allowed to do what we
had to do to get the job done and then when I come
in the civilian world, I don’t even find that. I don’t find any comradery, I don’t find any discipline, and it’s just people just
CYAing their position, hoping not to get fired so
they can get the next promotion and I call it the
bureaucracy of organization. How does somebody not let
that set into the company? Because it’s just a horrible feeling to have all these little
people telling you what to do, but they don’t get anything done. – [Safi] Exactly right. And that’s exactly what I
mean by changing culture. If you reward people based
on rank and promotions, that’s what they’re gonna
talk about in the hallways. And you have to change the structure. For example, small companies,
why do they not have that? Because rank doesn’t matter. Imagine you’re a five-person company and you’re developing look in my case it was a new cancer drug. Imagine you’re a five person company. Yeah, maybe there’s, of course, there’s team members and team captains, but it doesn’t matter
who’s the captain or not. If that drug works, everyone’s
a hero and a millionaire. If it fails, everyone’s unemployed. So everybody rolls up their
sleeve to get the job done. And so what you need to
do inside a large company is change the incentives. Stop rewarding rank. Stop rewarding, you can, I’ll
just give an extreme example. Suppose you paid everybody
the same base salary regardless of their rank, but you only rewarded them
on their ideas and results. Why would you care about promotion? Of course you wouldn’t
care about promotion. You would just
– I like that idea. – [Safi] You would just, nobody would, you see you can diagnose a disease by what do people talk
about in the hallway. When you’re a small team
or company or group, what do they talk about in the hallway? Their idea. You know, your small film production shop, how do we save, rescue this film? How do we get the best director? How do we get the best actor? How do we fix the script? If you’re a biotech or a small IT company, how do we create the best product? How do we win more customers? No one talks about am I the
team member or the team captain. Who cares? Who cares what sign’s on your door? Now you fast forward. If you’re a much large company, people are just getting rewarded
based on their base salary of course that’s what they’ll
talk about in the hallways. Well what’s your title? What’s your title? What’s your title? What’s his title? And so on. – A lot of gossip. There’s a lot of gossip.
– How much is your bonus? – [Robert] How much is your bonus? How much is your bonus? Geez, drives me nuts. (Kim laughs) Anyway, you know one of the reasons, Safi, that I like sales was that I got paid, if I sold, I ate and if I
didn’t sell, I didn’t eat and I like to eat. But when I went into admin, they were not motivated by
the same incentives, you know. So whether I got my order in or not, they didn’t really care ’cause
they didn’t get paid anymore whereas if I got my orders in, I got paid. Is that kind of what you’re talking about? – [Safi] Exactly. Those are the underlying,
subtle elements of structure. How do you reward people? How you reward people,
the structures you design, the incentives you put in place will drive do you encourage politics, or do you encourage innovation? – Love that. And you say, as you said before, the two dynamics that have
to be within any organization is there’s got to be that dynamic where you fail a lot, where
you make a lot of mistakes, where you’re always on
the edge taking risks and the other part is that
you need the discipline. So if we’re out there
and we’re failing a lot and we get this question a lot, if we’re failing a lot and
we’re taking all these risks and making all these mistakes,
how do you personally, what’s your philosophy
on persisting through these failures that are
happening every day? – [Safi] I would say I have two acronyms that I keep in mind. I have them posted on my wall. One is LSC. LSC to me is Listen to
the Suck with Curiosity. And by that I mean when
something doesn’t work and someone, you have this beautiful baby, you’re excited, it’s your product, and you show it to somebody and they say no, I’m not interested,
and blah, blah, blah, rather than just getting angry, or dismissing them or telling
your friends it’s stupid, or calling your mother and
having her support you, you ask, you put aside your
urge to defend and dismiss, and ask them
politely…because it’s a gift. Getting real feedback is a gift. There’s no upside in it for them. Ask them to help you understand what is it that doesn’t resonate? ‘Cause only by pulling on those threads might you discover that
little gold nugget. They may know something about
what a competitor is doing that you had no idea. They may see something in
your product or your idea that you were totally blind to. That little nugget can save you. So you listen to, you
don’t just repeat back like all that active listening
stuff you hear in trainings, that’s sort of boring and a waste of time. – Thank you for saying that. – [Safi] What you want to
do is set aside the urge to punch ’em in the face ’cause they’re not buying your stuff or they’ve dismissed you, and put on your Sherlock Holmes hat or if you’re a little
older, your Columbo hat and say, “really, could you help me “understand why you’re not interested?” And it’s totally okay. So the one thing to persist is LSC. ‘Cause the really great
entrepreneurs and innovators I would see that over and
over working with them. They just kept probing,
help me understand. And that’s how they teach them. – What I love about that too is because often times
people are so passionate like you said they love the baby, they’re so passionate about their product that they don’t want to
hear any negative feedback. They don’t want anybody to tell them, so they ignore it, and the next thing you know their product fails. So sometimes people become over passionate and they miss that LSC
and getting that feedback. So I think that’s a
really important point. – [Safi] Exactly right. I sometimes tell people it’s hard to hear nobody likes your baby. But it’s even harder to keep asking why. – Yes. – Safi, you know in my
book, “Rich Dad Poor Dad” Every publisher in New York turned it down saying I didn’t know
what I was talking about and now it’s been on the best seller list for 20 something years. – [Safi] Yeah, it’s an
incredible inspiration to a lot of us who are just starting out, so thanks for that, and
thanks for that story, actually, I didn’t even know that but that’s, you listen to your LSC and the second one is another acronym ’cause I don’t have a very good memory unless I have an acronym, is SRT. And that’s spirit, relationship, and time. And those, for me, are the three things I have to keep my eye on. Those three balls you need to juggle and make sure they never drop. And that is, for me, spirit
is your higher purpose and that higher purpose, it
can depend on the person. For many people it’s faith. For some people in the medical world, it’s helping patients
who have severe diseases. Seeing people, for me this was
an enormous motivating force to get up every morning, especially after I lost my dad to cancer is the purpose, the reason for getting up in the morning is that if something
I do could give people more time on earth with their loved ones, that’s incredibly motivating for me. So that’s S, keep coming back
even as you’re struggling or people are saying, you know. Spirit, S, your higher purpose, the reason you’re doing what you’re doing. R is relationships. The kind of support you need, the kind of power you need to recharge your batteries never comes from stuff. It doesn’t come from things,
it comes from people. It comes from people that you’re close to. So you want, when you
are deep in a project and trying to get your way out of it, and things are very difficult, often relationships are
the first thing to go. But those are exactly the
things that you need the most. It doesn’t have to be 500 people going to a cocktail
party three times a night every night five nights a week. It means a handful of
people, five to seven people, that really nurture you, that
really recharge your battery. And don’t cut them out. You need them, especially
when things are tough. So S, spirit, R, relationships, and T is time. When you’re in the middle
of fighting a deep battle, and things are really
tough and you’re waiting for like some big results, its easy to fill your calendar with stuff
that doesn’t matter very much. Little tasks that you should get done, and you get them done because it gives you a feeling of moving along. But then you’re just wasting your time. So it’s important to keep your eye on what’s really important,
what really is gonna move the ball forward,
what’s really urgent, what really matters to you? So for me it’s like a thermometer. I try to keep SRT in mind at all times. And if I’m getting low,
if there’s a yellow light, or a red light on any one of those things, then I know it’s time to reset. – That’s great, that’s great.
– And I love – [Robert] The other
one you have called PP. Productivity verses politics. And man I tell you, there’s so many politics going
on, nothing gets done. So that’s what drives me nuts. I just want to jump in and get stuff done. But anyway, Safi, thank you for the fabulous book “Loonshots”. I’m gonna recommend everybody get it simply because dealing with
people is the hardest thing. There’s, you know, I
was gonna play this song called You Talk Too Much,
and I tell you what, as organization grows, I hear so much talk, and less production. Talk, and no production. But anyway, that’s life, but
you still have to have people. Or like one of my great friends, he’s totally on his own, he
can make money on his own, he might be the happiest guy I know. Any comments, Kim? – No, I just thank you. Thank you, Safi, for your
great book “Loonshots”. How to nurture the crazy
ideas that win wars, cure diseases, and transform industries. I think it’s a fantastic book. I can’t wait to dig into it. – And you have Daniel Kahneman as one of your headline
guys who endorse your book so congratulations on that ’cause Kahneman and those guys are way, Kahneman and Tversky, right? – Yes, absolutely. They transformed. They started off as a crazy idea that everybody dismissed and transformed finance and economics. – Right, right, right. So congratulations, keep up the good work and the chance
– Thank you for the gift. – [Kim] Thank you for your gift that you’re giving the world. – Please say hello to Dr. Amy Edmondson and keep up the good work. – Thanks for having me on your show. – Thank you, Safi. – And we come back we’ll be going to the most favorite part of our program, it’s Ask Robert. We’ll be right back thank you. Welcome back, Robert Kiyosaki
The Rich Dad Radio Show the good news and bad news about money and you know sometimes
when you’re in business the less you need people,
the happier you are. You can listen to The
Rich Dad Radio Program anytime, anywhere, on Android or iTunes and all of our programs are archived at richdadradio.com. We archive them so you can
listen to this program again. Again, or guest was Safi Bahcall, B A H C A L L His website is bahcall.com. He’s the author of “Loonshots” how to nurture crazy ideas that win wars, cure diseases, and transform industries. So it’s been a fabulous program, and then please listen to
this podcast one more time, especially if you have friends and family and business associates because today everybody needs new ideas, but unfortunately as most of us know in any kind of organization of business, politics trumps productivity. Lot of talk and not much productivity. So it’s a great book, it’s called “Loonshots” by Safi Bahcall. Any comments, Kim? – Well a couple great takeaways. And Safi’s a pretty smart guy. Went to Harvard, PhD from Stanford, created a biotechnology company for developing new drugs for
cancer and took it public, and was the CEO so he knows
a little bit about business but my favorite takeaway that he says to really be successful
and stay innovative that a company needs two dynamics. One is the dynamic of
making a lot of mistakes and failing a lot and we
talk all about that a lot. We’re always on the edge,
you’re taking risks, but then you also need the discipline to put these crazy new ideas into practice so he says in companies you have artists, like the ones who are the creative and the innovatives, and
then there’s the soldiers, who actually take the product
and get it out to market. So I like those distinctions
because sometimes we don’t know if we’re
the soldier or the artist and they definitely will clash, so you’ve got to identify those. Great book, great book.
– And that’s why he uses – [Robert] The metaphor water. You know you have ice, which is solid, and that’s a bureaucracy, then you have the slushy
which you have water and ice, then you have pure water. And a lot of times, for Kim and I, we’ve dealt with a lot of entrepreneurs who are just pure water. (laughs) They flow everywhere. Anyway, that’s why the song
is People by Barbra Streisand. You can submit your
questions to Ask Robert at richdadradio.com so Melissa, what’s the first question? – [Melissa] Our question today, Robert, comes from Leslie in Boston. Favorite book Rich Dad Poor Dad. Robert and Kim, my husband and I are in year two of our new business. We’ve learned the hard way to
overcome certain obstacles. How do you deal with the curveballs and the loneliness that comes with your friends and family not understanding the life of a small business owner? – Well I think that’s the benefit of being a small business owner, is because there’s no such
thing as a job that’s 24/7. And the more you can
withstand the loneliness, the challenges, the curveballs, in theory, you get stronger. Now the problem is you
can also get stressed out which makes you weaker, so that’s why what you’re going for I
commend you immensely for, but it never really ends. The hard part is talking,
in fact I shamelessly promote by book called
“The Cash Flow Quadrant”. It’s about employees, small business which you probably are now, big
businesses, and investor. They’re all four different people. So to grow, part of it is being aware of who we are talking to. When I’m talking to an employee, I cannot use my point of view too often because it’s not the same point of view. You know, I really don’t understand them. They don’t understand me. So “The Cash Flow Quadrant”
is a very important book. Any comments, Kim? – Yeah, well I can just tell a story because one of the things that
I think are really helpful is to find other entrepreneurs and kind of surround your
self with other entrepreneurs and there’s organizations
out there that do that but when I was starting out
and I first met you, Robert, on one of our first dates and you said, “what do you want to do with your life?” I said, “I want my own business.” But I wasn’t around anybody
who was entrepreneurial. I didn’t grow up with that. And your comment to me
was, “well I started “several businesses and “all of my friends are entrepreneurs.” And I’m like that’s a great place to start because I’m gonna learn
from them, firsthand, what it takes to run a business. So I would say if you
can surround yourself with more and more entrepreneurs,
that’d be really helpful. – And when people say what was just my rich dad my poor dad? My poor dad was a school teacher. He was an employee. And my rich dad was an entrepreneur and it’s like what they
call chalk and cheese. They’re different people entirely. And to ask them to understand each other is almost ludicrous. So that’s why Safi’s book “Loonshots” a good book for people,
all organizations to read, to understand that you need more than one type of person in the business. And all too often like I say when I run into a company that’s dying, it becomes a bureaucracy. Everybody’s got their little turf, they got their little titles, and everybody’s afraid of making mistakes and they want to make sure
their feelings are not hurt. That’s when the company’s dead. ‘Cause it’s already died
and gone to hell anyway. Any comments, Kim? – Well and you gotta have a strong spirit because as Safi says,
often times people will say I don’t like your product, or it’s never gonna work or you’re crazy. I mean we were told that
about the cash flow game. You’re crazy, what do you
think you’re gonna build and people will just come? – If you build it, will they come? – But what he says is you’ve gotta have that passion for your product, but then you’ve got to listen to feedback with people are saying well no, maybe that’s not the product we want, or we’re not interested in that product. You’ve got to get that
feedback that’s negative and learn from it and
make the product better. So there’s a lot of
great stuff in this book and we’re just scratching the surface. – So once again the title of the book is called “Loonshots” by Safi Bahcall. S A F I B A C, no, B A H C A L L. This is the part I like. How to nurture the crazy ideas that win wars, cure disease,
and transform industries ’cause that’s what entrepreneurs do. So once again, submit your questions to [email protected] and I think Safi for his generous contribution to our society. Thank you for listening
to The Rich Dad Show

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27 thoughts on “How To Run A Business Successfully – Robert Kiyosaki [FULL Radio Show]

  1. سپاس از آموزه های شما.

    در جوانی به کوههای اطراف شیراز میرفتیم و با دوستان گپ میزدیم در خصوص رهایی.
    مدتی گذشت و دیدیم اسیر رهایی شدیم، سپس بدنبال رهایی از رها شدن بودیم…..

    خلبان آرشید مطیع قوانین

  2. How to cultivate enough money to invest in real estate. Without borowing money with intrest. Im a marketing student 23y from belgium. Im tired of the schoolsystem and cold small minded people here in belgium. Give me options please

  3. Robert is correct, dealing with people is the hardest job in business especially the spoilt only child now adult employee who has gotten there own way all there life and now has to deal with other people. Employees who had brothers and sisters already know how to cooperate with others and are a joy to employ. Now which country has a couple of generations of spoilt only children problem?

  4. In today's businesses teams peoples are voltures to eachother. Like mega dinosaurs, mega corporations needs to get extinguished for the health of societies because big organizations are so toxic that we humans are destroying oursleves in the most painful ways possible. Specially in the new matrix structures multinational corporations are only potentiating the worst of the human beings.

  5. My dad comes from a poor family and with out doubt he was poor too the greatest lesson I learned from him is that if you have a problem don’t ask me because my world views and opinions was what made me poor that’s why I don’t want you to learn from me.

  6. Its fuc.. true one day my boss told me when i was 22 years old i dont belibe afther 3 years i was in onther job doing the same thing  and realice the mf was right people is the most Ward thing to manege

  7. Every business needs to hear this. These are typical problems at work. Management would rather continue to have the same problems than try something new. You have to tell them the same things too many times before they get it, if they ever get it. I feel like Shaka Zulu sometimes.

  8. Sir I really like to talk to the source behind Rich dad because when I tell my vision to people they take my idea please please get in touch with me

  9. I'm sure that some will find this broadcast useful, and with all due respect to today's guest and his book – I suggest to avoid this type of show in future, as much as possible. For me all this "common sense" talk is classified along with all the other "hot air" in finance and business ; the show on the latest real-estate investment trends was MUCH more useful in my opinion ! Thank goodness Robert saves the day again with his bits . . .

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