Podcast Summary: Build with Leila Hormozi
Episode: 4 Imperative Skills for New Leaders or Managers | Ep 219
Release Date: December 18, 2024

Introduction

In Episode 219 of "Build with Leila Hormozi," host Leila Hormozi delves into the crucial skills that new leaders and managers must develop to ensure their success in both their roles and the broader business landscape. Drawing from her extensive experience in scaling businesses to over $100 million and growing acquisition.com into a billion-dollar portfolio, Leila provides actionable insights and practical strategies tailored for emerging leaders. This episode is particularly relevant for those stepping into leadership roles for the first time, whether within their own ventures or as part of larger organizations.

1. Informing the Cost of Yes or No Decisions

Understanding the Broader Impact of Decisions

Leila emphasizes that effective leadership isn't merely about making decisions by saying "yes" or "no." Instead, it's about informing team members of the costs and implications associated with each choice. This approach fosters a transparent environment where decisions are understood in context, promoting informed and deliberate actions.

“It's not about saying no; it's about explaining the cost.”
— Leila Hormozi [05:30]

Practical Application: Providing Context

When team members propose ideas or solutions, leaders should detail the potential impacts of these proposals. For instance, if an executive suggests implementing new software, Leila advises breaking down how this decision would affect other departments and current projects. This method ensures that all stakeholders are aware of the trade-offs and can make informed decisions.

Encouraging Ownership Through Context

By sharing the full scope of implications, leaders empower their teams to own their decisions while understanding the broader business objectives. This transparency discourages impulsive decisions and encourages a more strategic approach to problem-solving.

2. Managing Up: Effective Communication with Supervisors

Defining "Managing Up"

Managing up involves effectively communicating with your boss to ensure alignment on priorities and expectations. Leila underscores the importance of this skill, especially for new leaders who might be accustomed to having someone else dictate their priorities.

“If you're a leader reporting to a leader, then I would bet my bottom dollar that your boss expects that you have the skill to do this.”
— Leila Hormozi [15:45]

Strategies for Managing Up

• Proactive Communication: Regularly update your supervisor on your workload, challenges, and progress. This ensures that your boss is always informed and can assist in prioritizing tasks.

• Advocating for Resources: If you're overwhelmed or lacking necessary resources, communicate this clearly to your boss, providing solutions or alternative strategies.

• Prioritization Alignment: Work with your supervisor to align your priorities with the company's objectives, ensuring that your efforts contribute meaningfully to overarching goals.

Overcoming Challenges

Leila acknowledges that not all bosses are receptive or easy to communicate with. However, she encourages leaders to persist in open communication, as withholding information can lead to misunderstandings and inefficiencies.

3. Developing Emotional Resilience

The Reality of Unpopular Decisions

Leadership often requires making decisions that may not be well-received by everyone. Leila highlights the necessity of being emotionally resilient to handle such situations gracefully.

“You will have a very hard time in leadership because I can't tell you how many times I've made a decision that I know people don't like.”
— Leila Hormozi [25:20]

Maintaining Professionalism

It's crucial to differentiate between making tough decisions and being disrespectful. Leila advises leaders to communicate their decisions clearly and respectfully, acknowledging differing opinions while standing firm on what’s best for the business.

Balancing Empathy with Assertiveness

While it's important to consider team sentiments, leaders must prioritize the company's needs. Developing emotional resilience involves accepting that not all decisions will please everyone and being comfortable with this reality.

4. Mastering the Art of Prioritization

Prioritization as a Core Leadership Skill

Effective prioritization ensures that time and resources are allocated to tasks that drive the most value. Leila introduces the Eisenhower Matrix as a valuable tool for distinguishing between urgent and important tasks.

“My favorite tool to use for prioritization is the Eisenhower matrix.”
— Leila Hormozi [35:10]

Implementing the Eisenhower Matrix

1. Urgent and Important: Tasks that require immediate attention.
2. Important but Not Urgent: Tasks that contribute to long-term goals.
3. Urgent but Not Important: Tasks that can be delegated.
4. Neither Urgent nor Important: Tasks that should be eliminated.

Proactive Planning

Leila stresses the importance of blocking time for reflection and planning. By regularly reviewing past and upcoming tasks, leaders can adjust their strategies to stay aligned with their objectives.

“I have time where I look at last week, I look at the coming week, and usually a month behind and a month forward.”
— Leila Hormozi [40:05]

Transitioning from Reactive to Proactive

New leaders often find themselves in a state of constant reactivity, which hampers effective prioritization. By adopting a structured approach to planning, leaders can transition to a more proactive stance, ensuring that their actions are aligned with strategic goals.

Conclusion

In this episode, Leila Hormozi provides a comprehensive roadmap for new leaders aiming to build unshakeable businesses. By informing the cost of decisions, managing up effectively, developing emotional resilience, and mastering prioritization, leaders can navigate the complexities of their roles with confidence and clarity. Leila’s insights, grounded in her personal experiences and success, offer invaluable guidance for anyone looking to enhance their leadership capabilities and drive substantial growth within their organizations.

Key Takeaways:

1. Informing Cost Over Saying Yes/No: Foster transparency by explaining the implications of decisions.
2. Managing Up: Maintain open and proactive communication with supervisors to align priorities.
3. Emotional Resilience: Embrace the necessity of making tough decisions, understanding that not everyone will agree.
4. Prioritization Mastery: Utilize tools like the Eisenhower Matrix and dedicate time to strategic planning to ensure focus on high-impact tasks.

Leila Hormozi encourages leaders to continually develop these skills, emphasizing that they are learned and honed over time, rather than innate traits. Her pragmatic approach serves as a valuable resource for emerging leaders striving to make meaningful and effective contributions to their organizations.