Podcast Summary: "How Raise Your Standards TODAY w/ Leila Hormozi | Ep 795"

Podcast Information:

• Title: The Game with Alex Hormozi
• Host/Author: Alex Hormozi
• Episode: How Raise Your Standards TODAY w/ Leila Hormozi | Ep 795
• Release Date: November 25, 2024
• Description: In this episode, entrepreneur and author Alex Hormozi teams up with his wife, Leila Hormozi, to delve deep into the concept of raising standards in business and life. They share insights on building high-performing teams, maintaining company culture, and the relentless pursuit of excellence that has driven their journey from $100M to $1B in net worth.

1. Introduction: Setting the Stage

[00:00] Alex Hormozi (A): Welcomes listeners and introduces his co-host, Leila Hormozi, highlighting their collaborative efforts in business. Alex emphasizes the focus of the episode on "standards," a crucial theme in both their professional and personal lives.

Key Quote:

“The single prompt or word is standards.” [00:09]

2. Defining Standards and Their Business Impact

Alex introduces a pivotal tweet from Leila: "The reason your business is shit is because you are comfortable with a shit business." This statement serves as the foundation for their discussion on how comfort with mediocrity can stagnate business growth.

Key Points:

• Comfort vs. Excellence: Settling for a "shit business" indicates complacency and a lack of drive to improve.
• Continuous Learning: Even lessons that seem repetitive can deepen one's understanding over time.

Leila Hormozi (B): Expands on the idea, stressing that building a great business often involves repeated failures and relentless efforts to refine leadership, culture, and team dynamics.

Key Quote:

“Building a great business is just failing over and over and over again. Just figuring out what works.” [01:41]

3. Motivation as the Catalyst for Raising Standards

Alex discusses his conversation with Dr. K about motivation, defining it as the opposite of deprivation. He posits that standards act as the catalyst for actions by defining the gap between current state and desired outcomes.

Key Points:

• Motivation Measurement: Motivation is only gauged through actions taken to bridge the gap defined by standards.
• Standards as a Seed: They ignite the necessary actions to achieve desired business and personal goals.

Key Quote:

“Standards are the line in the sand that separates you from where you want to go.” [02:30]

4. Leadership and the Highest Standards

Alex proposes that within any team, the individual with the highest standards should be the decision-maker. This ensures that the organization continuously strives for excellence rather than settling for mediocrity.

Key Points:

• Identifying Leaders: Look for those who consistently raise the bar and address deficiencies.
• Preventing Dilution: Higher standards prevent the gradual decline of business quality as teams expand.

Key Quote:

“If there's someone who has a higher standard of excellence for this business than Layla and I have, then that person should run it.” [03:20]

5. Raising Standards Amidst Company Growth

As businesses scale, maintaining high standards becomes challenging due to the influx of new employees and potential dilution of company culture. The Hormozis discuss strategies to counteract this inertia.

Key Points:

• Continuous Bar Raising: Standards must evolve with business growth to prevent quality dilution.
• Selective Hiring: Bringing in individuals who not only meet but exceed existing standards.

Key Quote:

“If you don't continue to raise the bar and to raise the standards of who comes in and what the standards are, then they dilute even more.” [04:00]

6. Personal Anecdotes: Learning from the Best

The duo shares experiences from interactions with high-performing YouTubers and other successful individuals, illustrating how exposure to superior standards can reset one's own expectations and drive improvement.

Key Points:

• Exposure to Excellence: Meeting and learning from top performers can dramatically elevate one's standards.
• Implementation of Learnings: Translating high standards witnessed into actionable strategies within their own business.

Key Quote:

“Seeing it in person, in the flesh, ... they reset our standards for how much more work we could be doing.” [05:30]

7. Accountability and Setting Expectations

Leila introduces her formula for accountability: Expectations + Measurement × Reinforcement. This framework ensures that high standards are maintained through clear expectations, effective measurement, and consistent reinforcement.

Key Points:

• Setting Clear Expectations: Define what success looks like in specific, actionable terms.
• Measuring Performance: Utilize tools and metrics to objectively assess if expectations are being met.
• Reinforcement: Recognize and reward behaviors that align with high standards to encourage repetition.

Key Quote:

“Expectations plus measurement times reinforcement.” [25:21]

8. Tactical Implementation: Hiring and Team Dynamics

The Hormozis provide practical examples of how they uphold high standards during the hiring process and within team interactions. This includes reviewing all prior interviews to ensure candidates meet their stringent criteria.

Key Points:

• Thorough Interview Process: Watching all candidate interviews to avoid redundancy and ensure alignment with standards.
• Selective Hiring: Committing to hiring only those who meet or exceed the established standards, even if it means turning down multiple candidates.

Key Quote:

“If you have to constantly tell somebody what they're doing wrong, ... they're gone.” [26:00]

9. Overcoming Challenges: Resistance and Consistency

Raising standards often meets resistance from team members accustomed to lower expectations. The Hormozis discuss strategies to maintain consistency and handle pushback effectively.

Key Points:

• Facing Resistance: Understand that initial pushback is natural when changing standards.
• Consistency is Key: Continuously enforce standards to prevent dilution and maintain a high-performing culture.
• Leading by Example: Embody the standards you wish to see in your team to inspire others.

Key Quote:

“If you do not reset the bar, you will eventually dilute.” [23:24]

10. Conclusion: Embodying and Enforcing Standards

Alex and Leila wrap up by emphasizing the importance of embodying the standards they set for their teams. They encourage leaders to be relentless in maintaining high standards and to lead by example to foster a culture of excellence.

Key Points:

• Lead by Example: Be an embodiment of the standards you expect from your team.
• Continuous Improvement: Always seek to elevate standards as the business grows and evolves.
• Protecting the Company: Prioritize the company's well-being over individual relationships to maintain high performance.

Key Quote:

“You need to be the standard.” [21:23]

Notable Quotes with Timestamps

• Alex: “The single prompt or word is standards.” [00:09]
• Leila: “Building a great business is just failing over and over and over again. Just figuring out what works.” [01:41]
• Alex: “Standards are the line in the sand that separates you from where you want to go.” [02:30]
• Alex: “If there's someone who has a higher standard of excellence for this business than Layla and I have, then that person should run it.” [03:20]
• Alex: “If you don't continue to raise the bar and to raise the standards of who comes in and what the standards are, then they dilute even more.” [04:00]
• Alex: “Seeing it in person, in the flesh, ... they reset our standards for how much more work we could be doing.” [05:30]
• Leila: “Expectations plus measurement times reinforcement.” [25:21]
• Leila: “If you have to constantly tell somebody what they're doing wrong, ... they're gone.” [26:00]
• Alex: “If you do not reset the bar, you will eventually dilute.” [23:24]
• Alex: “You need to be the standard.” [21:23]

Final Thoughts

In "How Raise Your Standards TODAY," Alex and Leila Hormozi provide a comprehensive guide on the importance of maintaining and elevating standards within a business. From strategic hiring practices to fostering a culture of accountability, the Hormozis emphasize that relentless pursuit of excellence is essential for sustained growth and success. Their insights offer actionable strategies for entrepreneurs and business leaders aiming to build high-performing teams and businesses that thrive in competitive environments.

For those looking to implement these strategies, the Hormozis invite listeners to join their scaling workshop in Las Vegas, promising personalized insights to help businesses escalate to the next level.

Join the Hormozis at: acq.com/go