In This Episode:
Insights from the book, “Managing Oneself” by Peter Drucker from my recent Reading Challenge… and my learnings from the challenge itself.
Show Notes:
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Full Transcript:
[00:00:00] In this episode, insights from the book “Managing Oneself” by Peter Drucker from my recent Reading Challenge and my learnings from the challenge itself.
[00:00:11] Welcome to the Business Numbers podcast. I’m your host, Ben McAdam. I’ve helped over a thousand business owners with growth, profits, and clarity around the numbers, and I created this podcast to help you with that too.
[00:00:24] I set myself the challenge of reading five books in April “to be less of a fool in April!” I joked. I’ve had trouble creating the time to read. Lately, my youngest is just now past two years old. Life is a bit intense those first two years, plus, you know, I want to spend time with her. So the April Challenge was designed to get me back into reading.
[00:00:49] I set myself the goal to read five. And you know what? First, I’ll talk about the book, and then I’ll tell you how the challenge went at the end. The book is called “Managing Oneself” by Peter Drucker.
[00:01:02] It’s a short read, 30, 60 minutes, depending on how fast you read. It’s only like 60, 70 pages. Without further ado, here are some of my favorite quotes, ideas, and insights from the book.
[00:01:14] The first one is this idea of feedback analysis. To write what you think will happen based on the decision or action you’re gonna take, and then nine to 12 months later, check what actually happened.
Feedback Analysis:
To write what you think will happen based on the decision or action you’re gonna take then nine to 12 months later, check what actually happened.
[00:01:28] I’m a big fan of improving our ability to predict the future because then we can take better actions and get to our goals more smoothly. So when doing cash flow projections with clients, for example, We don’t just set a projection. We also look each month to see how good the projection was compared to reality and then predict the future better based on what we’ve learned about predicting.
[00:01:51] A quote from the book, “Far too many people, especially people with great expertise in one area, are contemptuous of knowledge in other areas, or believe that being bright is a substitute for knowledge.”
[00:02:08] This is one for all the people who in school thought it wasn’t important to memorize facts, and they could just wing it with their brilliance. I was a little like that.
[00:02:19] But it’s also a good quote for the people who are experts. It’s something that they believe is really important, and they don’t respect other people’s expertise. It’s a good reminder for us to not get so wrapped up in what we do and what we are good at that we dismiss other things.
[00:02:37] Another quote, “Remedy your bad habits, the things you do or fail to do that inhibit your effectiveness and performance.”
“Remedy your bad habits, the things you do or fail to do that inhibit your effectiveness and performance.”
“managing oneself” – Peter drucker
[00:02:48] I don’t really have any comment to add here, and this is something I’m working on. Actually, you know what there is, there is something I’ve been playing with chat GPT a bit lately and experimenting with getting it to rewrite its responses at a fifth-grade reading level, which is something a lot of people say that we should do with our content. Make sure it’s at a fifth-grade reading level so it doesn’t alienate people, and it’s easy to read and stuff. And this quote is definitely not a fifth-grade reading level.
[00:03:19] Inhibits your effectiveness is definitely not a fifth-grade reading level phrase. And I actually kind of appreciated that.
[00:03:26] Another quote, “One should waste as little effort as possible on improving areas of low competence.”
[00:03:36] I read something from Tim Ferriss along the lines of growing your strengths makes a bigger difference than working on your weaknesses and surrounding yourself with people who make up for your weaknesses.
[00:03:48] And I really liked that idea because, for me at the time, this is seven years ago now. Something like that. At the time, I was trying to work on my weaknesses. I felt bad about my weaknesses. I was working on them but wasn’t really making much progress, and that felt terrible.
[00:04:13] I felt like I’d never be able to have success because I’m not making progress.
“One should waste as little effort as possible on improving areas of low competence.”
“managing oneself” – peter drucker
[00:04:17] And then I heard the, you know, read this quote from Tim Ferris about the work on your strengths and started working on those. And suddenly, that made a bit of a difference. I started making progress and felt great. And like, “Ah, now I understand why he said that!”
[00:04:36] Here’s another quote from the book.
[00:04:39] Actually, no, this isn’t a quote. This is an idea. How we {learn} is unlikely to be changed easily, like we learn or perform by reading, writing, listening, talking, or doing. Usually, we have a preference for one of those, and that’s unlikely to be changed.
[00:04:59] Someone who prefers to listen is going to be more effective always at listening than reading. In terms of the most effective way to get the information in. Not necessarily that they’re gonna suck at reading, just that listening will always be easy for them.
[00:05:17] So, for me, I noticed that if I hear someone explain something, I usually remember it a lot better than if I read, and maybe you might be one of the people like me who finds that sometimes they need to talk through a problem.
[00:05:33] They can’t write it down. They can’t think about it in their head. They might wanna talk through the problem. And so it’s worth knowing what works best for you. And capitalize on that, use that strength. You might think there’s a way you should do something like, you know, you should do emails, but that’s not true. In the case of emails, you could respond with loom videos or audio messages rather than writing.
[00:05:59] So there are lots of ways to do it. Similarly, some people prefer to work with people or alone. Some people prefer to be subordinates or in charge. Some people prefer stress and chaos versus calm routine. Some people prefer being in a big business versus a small business. That’s worth understanding your strengths or what your preferences are or how you perform best and then double down on that. Use that.
With help from an advisor you can act with speed, self-confidence, and courage when it comes to decision-making.
[00:06:24] Drucker wrote in the book that some doers suck at advising. I’m paraphrasing here. But just because someone has done the thing or achieved the thing doesn’t mean they can help others do the thing. Or teach others how to do the thing.
[00:06:38] Advising and teaching is a separate skill to master and a separate strength that someone might have.
[00:06:45] This touches on something I’ve been annoyed about for years after seeing so many successful doers suck at passing that on to others. And so many people think that only the people who have done it are people who can help them.
[00:06:58] Another idea, kind of related… Some people “need an advisor to force themselves to think, to make decisions, to act with speeds of confidence and courage.”
[00:07:08] I like this idea that with help, From an advisor, you can act with speed, self-confidence, and courage when it comes to decision-making. As my businesses have grown and as my clients’ businesses have grown, I’ve definitely noticed a trend that making decisions becomes harder.
[00:07:31] It requires more thinking time. Like a CEO of a business needs thinking time, they need to. Be apart to think about things, and that’s a valuable thing to do if it takes you a while to make a decision. That’s not necessarily a bad thing because the stakes are higher, and that you need to allow time and make time for that.
[00:07:52] And of course, the whole, you know, advisors can be valuable. Yeah, that sounds about right. Says totally unbiased me.
[00:08:01] Another idea from the book. If someone’s values are too different from the values of the business, they’ll be frustrated and won’t produce good results. There’s a few interesting ideas in this book about why people on your team might not produce good results.
If someone’s values are too different from the values of the business, they’ll be frustrated and won’t produce good results.
[00:08:14] And for this one, it’s saying that you might have hired someone with the right skills and experience, but because their values are different from the values of the business, they won’t be as successful as you hoped. And it’s not necessarily that they’re a terrible person like you could quite happily give them a reference. Potentially.
[00:08:34] But just the values are the problem there.
[00:08:37] Another one on values, “There is sometimes a conflict between a person’s values and his or her strengths.”
[00:08:45] So I met a business owner two years ago who was really good at like the scammy ads, crap info products. You know, manipulating, ripping off people, not, not, not quite ripping them off, but like not really necessarily giving them the kind of value for their money or the kind of transformation that he would’ve preferred.
[00:09:09] Like, he was really unhappy with himself when he did this, even though he could do it and make a decent amount of money. So the thing to remember is that being good at something isn’t the only decision criteria for what we should do. You have to align your values with what you’re doing. Otherwise, you’ll be unhappy.
[00:09:32] Another quote, “Most people, especially highly gifted people, do not really know where they belong until they are well past their mid-twenties.”
“Knowing where one belongs can transform an ordinary person, hardworking and competent, but otherwise mediocre, ordinary person into an outstanding performer.”
“Managing oneself” – peter drucker
[00:09:42] I like this one. It removes the pressure to figure things out and explains why it took some of us a little while to do that. There’s more support. It is more support for the idea of traveling before starting a career or a business career.
[00:09:56] Though part of figuring out where we belong involves being somewhere and seeing if that fits. It’s not a thing that you can figure out from the sidelines. You have to jump into the game and see if it’s for you.
[00:10:09] Another quote that kind of encapsulates a couple of sections in the book, “What are my strengths? How do I perform? What are my values? And then they, {people} can decide can and should decide where they belong. Or rather, they should be able to decide where they do not belong.”
[00:10:29] That last bit’s pretty helpful for narrowing down options or not staying in the wrong place. Like how your marketing shouldn’t just attract people but also should repel the wrong people so that you don’t waste time with ’em on sales calls, or they don’t clutter up your pre-sales chat or contact forms or things like that.
[00:10:47] You can use your strengths, your values, and knowledge of how you perform, like, you know, whether you’re a reader, writer, do, or whatever from before. You can use that to decide where you belong and where you don’t belong.
[00:11:01] And it’s the same thing for your team.
[00:11:03] In fact, he’s another quote that’s relevant for our team, not just us. “Knowing where one belongs can transform an ordinary person, hardworking and competent, but otherwise mediocre, ordinary person into an outstanding performer.”
[00:11:20] So again, the people on your team that aren’t performing well might not be because they’re bad. Or terrible performers or don’t have skills or, or that you misjudge their skills are experienced. It could be they’re in the wrong role or the wrong business. You might be doing your C players a favor by replacing them with A players because then your C players are freed up to look for an opportunity that suits them better, where they can be an A player themselves.
[00:11:49] Another quote. “Successful careers are not planned. They develop when people are prepared for opportunities because they know their strengths, their method of work, and their values.”
“Successful careers are not planned. They develop when people are prepared for opportunities because they know their strengths, their method of work, and their values.”
“Managing oneself” – peter drucker
[00:12:01] So this is another one that’s on the idea of strengths, how you perform, and how your values help you decide where you belong.
[00:12:10] But, and, and the fact that it’s not planned, you have to get in the arena and see whether it’s the right place for you. But the bit that I wanna underscore in this quote is the. Being prepared for opportunities. I just said this the other day on Twitter @McAdamBen, that one of my favorite ideas from the richest man in Babylon book is this idea that luck is where preparation meets opportunity.
[00:12:38] I like it because it’s not just about random chance, the opportunity part. It’s also about the preparation part. We can be ready for the opportunity, and if we’re not ready for the opportunity, it’s not really lucky, is it? I’ll probably do a whole episode on the ideas from The Richest Man in Babylon. There are a few really good ideas in there. It’s one of my most recommended books.
[00:12:59] So here’s another idea of that don’t plan too far ahead… “A plan can usually cover no more than 18 months and still be reasonably clear and specific”… I usually tell my clients that the cash flow projection beyond 12 months becomes less reliable, given how much things can change over 12 months. And it’s the same for planning in general.
[00:13:22] Like You, 12 months from now, would probably decide to do things differently or have a different plan than you now, given how much I imagine, you know, if you’re listening to podcasts like this one, you are, you’ll be learning a lot over a 12 month period, and you’ll probably make different decisions.
“A plan can usually cover no more than 18 months and still be reasonably clear and specific”
“managing oneself” – peter drucker
[00:13:40] So you’ll be a different person as well as things can change out there. Is there a recession out there now, or isn’t there? Either way. You know, the economy can change. AI is a thing that’s coming in. Lots of things can change over 12 months, and you might make a different plan.
[00:13:59] More on goals and planning is this idea of don’t set goals that are too easy to achieve.
[00:14:06] “First, the results should be hard to achieve. They should require stretching”… This is an idea that I…it took a little while for me to get the value of.
[00:14:21] I worked with a mindset coach from like a couple of years ago and that was when he first introduced the idea to me, I mean, and he has this similar philosophy that I found helpful is to set goals that you have to grow personally to be able to achieve, like the current version of you, it’s ludicrous that that person would be able to achieve the goal.
[00:14:45] You have to grow, you have to learn new skills, get different experiences, build, network, like whatever, like you have to be a different person. You have to be a different level of person, a different level, a different version of You to be able to achieve the goal.
[00:15:01] So, setting goals as a catalyst for Kickstarting personal growth.
[00:15:10] The reason why this is helpful is that number one, so we don’t get bored. If the goal to easy to achieve, it feels more like a list of chores to do than something exciting and meaningful to be a part of. I personally like to be growing as a person and growing my skills, and tackling new challenges. I don’t like doing the same thing over and over again.
So, setting goals as a catalyst for kickstarting personal growth.
If the goal to easy to achieve, it feels more like a list of chores to do than something exciting and meaningful to be a part of.
[00:15:34] In terms of like setting goals, like I, I like that they require me to stretch. I discovered when it’s been pointed out. But also like, sometimes, we place limitations on our goals because we only think of what we’re currently able to achieve, and we don’t factor in what we could learn to do with six to 12 months of effort.
[00:15:57] The You of today compared to the You of 12 months from now. Maybe you should set goals that the You of 12 months from now could achieve, or just think about it for a moment.
[00:16:11] More on goals. This is where I found something kind of like the smart goals system I’ve talked about in previous episodes and blog posts.
[00:16:18] Goals should be within reach But shouldn’t be too easy.” Goals should be within reach. Second, the results should be meaningful. And finally, results should be visible and if at all possible, measurable, “which I found helpful.
[00:16:36] You need to be able to know whether you’ve achieved your goal or whether you’re getting close to it. And the results have to be meaningful.
[00:16:44] Like, don’t set a goal of like an extra a thousand dollars of revenue if you don’t really care about a little extra revenue. Even an extra million in revenue might not be meaningful, or a hundred million might not be meaningful to you.
[00:17:02] Here’s another quote that you can also apply to other people “To be effective, you have to know the strength performance modes and the values of your coworkers.” That’s how you can be effective, but you can also apply it to them.
[00:17:15] And he says something like take responsibility for the communication as well, which I thought was an interesting point.
[00:17:22] It’s like if people misunderstand, that’s your responsibility. If people need to know something, it’s your responsibility. So make sure it happens. It was his point.
If people misunderstand, that’s your responsibility. If people need to know something, it’s your responsibility. So make sure it happens.
[00:17:33] Here’s another quote on not focusing, which I think is really relevant for the potential AI disruption in progress. “develop a second major interest and develop it early. No one can expect to live very long without experiencing a serious setback in his or her life or work”
[00:17:54] So something might come up and disrupt your industry and your business, and there might be a big change. So it’s useful to have something else that you can be doing.
[00:18:07] However, something perhaps that I might disagree with him on this point is that when you do one thing, you’re also building other skills.
[00:18:19] Are the skills, interests, and experiences that can be valuable if you experience a setback or disruption. So, for example, my main thing is coaching business owners on profits, growth, and clarity around the numbers. But I’m also developing skills as a podcaster, presenter, writer, manager, facilitator, salesperson, and so on.
[00:18:37] And so it’s the same thing for you. It’s like, yes, there may be some disruption, but you are, you have a broad basket of skills as a business owner, and you can use those in a lot of different ways.
[00:18:51] So those were my main takeaways from the book. Overall I really liked how to, the point the book was, and the stories, which I haven’t mentioned in this episode, really helped illustrate the points well too.
[00:19:06] Some of the stories were a little bit dated and very corporate business-focused, so you might not resonate with them, but if you do read the book, I think they will help. For those of you who learn best with examples.
“Develop a second major interest and develop it early. No one can expect to live very long without experiencing a serious setback in his or her life or work”
“managing oneself” – Peter Drucker
[00:19:22] Before we wrap up the episode, here’s how my reading challenge went in April…
[00:19:27] I read one book, and the book was only 61 pages. It was this book.
[00:19:35] I was really surprised, but to be honest, I had nothing to go on. When I set the goal of reading five decent sized books regular sized books, I didn’t really know how much time I would need because I haven’t really been reading books for a while I’ve been getting a lot of my knowledge from podcasts, blog posts, social media content, YouTube videos, working with clients, talking to friends and peers and other experts and coaches.
[00:20:06] So it’s not like I’ve neglected my learning, but I do feel like there are some things that are best shared through a book.
[00:20:16] So I’ve created more time. Like I said, I do sharpen the sword by interacting with my clients and other sources, but for sharing and gaining knowledge, books are an interesting vehicle.
[00:20:29] I found out that I prefer Kindle over paper books. Young Ben is horrified about this. He was a bit of a purist for books when the Kindle came out, and he first saw it in the entranceway of his favorite bookshop.
[00:20:43] “Ugh, why would I ever use that? I prefer books. Screen reading on a screen who’d do that all day for hours and hours and on end ?!” Turns out me!
[00:20:53] I’m also not such a fan of audiobooks. I don’t read books in a straight line. I like to pause for thinking. I reread parts and things like that. So, My ultimate learning from the Reading Challenge is I’ve bought a few more books on Candle Kindle, and I’ll be justifying the time spent by using my reading for content.
[00:21:15] I’ve made more time, and I’m gonna be using it for content like this podcast episode.
[00:21:19] Let me know if it’s helpful. I’ll do more of them on the podcast. I’m at least gonna do an episode on “The Richest Man in Babylon” because that’s got a lot of ideas. More people need to know.
[00:21:29] But either way, if I don’t do any more on the podcast, I’ll be sharing takeaways on social media, plugging Twitter again @McAdamBen, and I’m on Facebook too.
[00:21:38] Question for you before we go, let me know what books should absolutely be on my reading list.
Question:
What books should absolutely be on my reading list?
[00:21:45] Post a comment, reply to the email, let me know on Twitter or Facebook, whatever. Love to hear from you.
[00:21:49] That’s all for this episode. Thanks for listening.
[00:21:53] Thanks for listening. If this was helpful, please Subscribe, Follow, Rate, Like, Share, Comment… all the things!
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