Podcast Summary: "Your Standards Are Too Low with Alex Hormozi | Ep 208"

Release Date: November 20, 2024
Host: Leila Hormozi
Guest: Alex Hormozi
Podcast: Build with Leila Hormozi

Introduction: The Crucial Role of Standards in Business

In Episode 208 of Build with Leila Hormozi, Leila joins forces with her brother Alex Hormozi to delve deep into the significance of maintaining high standards in business. The episode, titled "Your Standards Are Too Low," serves as a powerful guide for entrepreneurs aiming to build resilient and unshakeable businesses.

Understanding Standards and Their Impact

Leila (00:33):
Standards aren’t just superficial benchmarks; they’re the foundation upon which successful businesses are built. Alex explains that while many business owners recognize the importance of hiring great people, they often lack a nuanced understanding of what "great" truly entails.

Key Insight:
As businesses scale, maintaining high standards becomes increasingly challenging. Without intentional efforts to raise these standards, the quality of the business inevitably dilutes.

The Relationship Between Standards and Motivation

Alex (01:45):
Leila's tweet, "The reason your business is shit is because you are comfortable with a shit business," encapsulates the episode's essence. They discuss how unshakeable standards cultivate a relentless motivation to improve and excel.

Notable Quote (03:41):
"In a business, people always ask, why do you need to continue to set the standard higher and higher? It's because as your business grows, you have to be the most potent source of those standards."
— Leila, 03:41

Explanation:
Standards serve as the "line in the sand" that drives action. The further a business is from its ideal standard, the greater the motivation to bridge that gap.

Raising Standards as a Continuous Process

Alex (07:00):
Exposure to high-performing individuals reset Leila and Alex's standards, demonstrating that excellence requires significantly more effort than they previously imagined. This realization underscores the necessity of continuously elevating standards to avoid plateauing.

Key Example:
After attending a meetup with top YouTubers, Leila and Alex revamped their approach to YouTube, not merely adopting new tactics but committing to a much higher level of effort and quality.

Accountability: The Backbone of High Standards

Leila (25:21):
Accountability is broken down into a formula: Expectations + Measurement × Reinforcement. Leaders must not only set clear expectations and measure performance but also consistently reinforce desired behaviors.

Notable Quote (22:01):
"The coolest thing about getting the office headquarters has been seeing how people watching us actually work in person has changed the work, the standards of the teams."
— Leila, 22:01

Insight:
Leaders must embody the standards they expect from their teams. By consistently demonstrating high standards, leaders set a powerful example that permeates the entire organization.

The Importance of Setting the Bar Higher Than Your Team

Alex (23:02):
As businesses expand, so does the potential for standards to dilute. Alex emphasizes the necessity of maintaining fewer, but higher-quality team members to preserve and elevate the company's IQ per capita.

Key Insight:
Adding more headcount should not compromise the average intelligence or work ethic of the team. Instead, the focus should be on enhancing the overall quality and capability of each individual.

Confrontation vs. Constructive Feedback

Leila (36:28):
Fear of confrontation often prevents leaders from addressing underperformance. However, effective criticism focuses on specific behaviors rather than personal attacks, fostering a culture of continuous improvement.

Notable Quote (37:05):
"If you can't articulate what you want them to do instead, then don't talk to them until you can."
— Alex, 37:05

Strategy:
When providing feedback, leaders should clearly define the desired behaviors and outcomes, enabling team members to make tangible improvements without feeling personally attacked.

Resetting Standards: A Continuous Cycle

Alex (34:48):
Businesses must periodically reassess and elevate their standards to keep pace with growth. This often involves rebuilding teams to align with the new benchmarks, ensuring sustained excellence.

Key Example:
When Alex discusses past experiences, he highlights the necessity of letting go of underperformers to maintain the integrity and momentum of the company.

Final Thoughts: Embracing High Standards as a Leader

Leila (32:32):
Maintaining high standards requires constant vigilance and the willingness to address issues promptly. Leaders must prioritize the company's success over individual feelings, ensuring that the team remains aligned with its core objectives.

Notable Quote (32:58):
"You need to be the steward of the company, not the steward of people's feelings."
— Alex, 32:58

Conclusion:
High standards are not a one-time achievement but a relentless pursuit. By embodying these standards, leaders like Leila and Alex Hormozi inspire their teams to achieve unparalleled excellence, driving their businesses toward monumental success.

Key Takeaways

1. High Standards Drive Excellence: Continuously elevate standards to prevent business stagnation and ensure ongoing growth.

2. Accountability is Essential: Implement clear expectations, measurable metrics, and consistent reinforcement to maintain team performance.

3. Lead by Example: Leaders must embody the standards they set, serving as the highest benchmark for their teams.

4. Constructive Feedback Over Confrontation: Focus on specific behaviors and actionable changes to foster a culture of improvement.

5. Selective Team Building: Prioritize quality over quantity when expanding teams to preserve the company's overall intelligence and work ethic.

6. Continuous Reassessment: Regularly evaluate and reset standards to align with the evolving goals and scale of the business.

This episode serves as a masterclass in the importance of maintaining and elevating standards within a business. By integrating these principles, entrepreneurs can build robust, high-performing organizations poised for sustained success.