In this episode of The Game with Alex Hormozi, Alex and Leila Hormozi emphasize the importance of setting and rigorously upholding high standards to achieve business success. They cover the need for leaders to embody and exemplify their expected standards, even when faced with tough decisions like removing underperforming team members.
The Hormozis share insights on hiring top talent through a rigorous vetting process and maintaining a high-performance culture. They discuss providing clear, constructive feedback and consistent accountability to communicate and enforce standards. Raising and continuously elevating standards is presented as crucial for organizations seeking growth and long-term success.
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Alex Hormozi emphasizes that setting and rigorously upholding high standards is crucial for business success. He argues that leaders must embody these high standards, citing examples like Musk, Jobs, and Bezos. As a business grows, Leila Hormozi notes that effort is required to prevent standards from diluting due to complacency.
Leaders need to exemplify the standards they expect from their teams. According to Leila, the leader must be even more demanding of themselves and their teams. The Hormozis advocate promptly removing low performers to prevent them from dragging down the organization's standards.
Raising standards often involves difficult decisions like dismissing underperforming team members, even if uncomfortable. Alex stresses that the CEO must uphold company standards over individual sentiments. Rebuilding teams with higher-caliber hires may be necessary, as the Hormozis "prune" the organization.
The Hormozis thoroughly vet candidates by reviewing interviews and rejecting finalists who don't meet their high benchmarks. Leila scrutinizes aspects like response speed. This disciplined approach ensures only exemplary candidates join.
Although unspecified, it's implied that leaders valuing high standards will adequately compensate and retain employees meeting those standards. Allowing mediocrity undermines the collective standards over time.
Alex advocates providing specific feedback on needed improvements, not vague critiques. Leila distinguishes between being "nice" to avoid conflict versus delivering "kind," constructive feedback.
The Hormozis emphasize ongoing follow-up, monitoring, and enforcing standards. Even minor issues demand prompt action. Establishing new benchmarks requires relentless reinforcement. Leaders must model the expected standards through consistent accountability.
1-Page Summary
Experts Alex and Leila Hormozi address the critical nature of maintaining high standards in a growing business, emphasizing the need for leadership to set the example and enforce rigorous expectations throughout the company structure.
The Hormozis relate business standards to the adage "you get the business you tolerate," with Alex noting the importance of creating a larger deficit between current status and goals to drive motivation. He argues that the person with the highest standards should make decisions, as seen at their company, acquisition.com. They stress the need for leaders to embody and exemplify high standards, noting how observing high achievers like Elon Musk, Steve Jobs, and Jeff Bezos can help elevate their own practices.
Alex Hormozi stresses that as the business grows, leaders must become the most potent source of standards to set the right tone for the entire organization. An email about Alex's stringent work ethic serves as proof that he practices what he preaches.
Leila Hormozi admits that wishing for a great business isn't enough; one must work tirelessly to achieve and uphold high standards. As the company grows, effort must be made to maintain the most concentrated version of the company, avoiding dilution by people who don't work as hard or share values to the necessary degree.
Leaders must exemplify the standard they expect, operate at a high level, and rigorously select their teams based on these high standards.
Leila emphasizes that the standard for excellence is generally low, criticizing this standard and highlighting her commitment to excellence and strong work ethic. She also discusses her meticulous attention to detail, setting a high standard for herself and her organization.
Hormozi suggests that part of upholding organizational standards involves not tolerating low performers, mentioning that "fewer, better people" can prevent the risk of diluting company culture. Leila meticulously plans and prepares for company growth, and together with Alex, focuses on preserving the company's standards.
The Hormozis describe the process of raising standards as challenging, involving the removal of underperforming team members and possibly rebuilding teams to align ...
Raising and maintaining high personal and organizational standards as a business grows
In the pursuit of excellence, it's imperative for leaders to strictly uphold the company's standards through thorough vetting of candidates and robust retention strategies.
Leaders like Leila Hormozi exemplify a commitment to maintaining high standards by actively involving themselves in the candidate assessment process. They watch every interview of highly important candidates and review recordings of all interviews to ensure these individuals meet the company's elevated benchmarks. Leila Hormozi is particularly diligent, noting any aspect of a candidate that may not meet her personal standards, such as speed, and uses these insights to focus her interviewing strategy.
Moreover, Alex and Leila Hormozi's rigorous review process, including their readiness to reject final-stage candidates who fail to meet the required high standards, demonstrates a disciplined approach to talent acquisition. By doing so, they maintain organizational standards and ensure that only the most qualified candidates are brought onboard, aligning with their high personal standards as leaders.
To sustain high standards, it's understood that high-performing team members who exemplify the company's ethos must be adequately incentivized and rewarded. Although not specified in detail, it is implied that leaders who hold high standar ...
Hiring and retaining top talent that meets elevated standards
Alex and Leila Hormozi highlight the critical importance of clear and specific feedback, as well as the need for consistent follow-up and accountability in maintaining team standards.
Alex Hormozi stresses the importance of delivering specific feedback rather than generic critiques to effectively communicate standards. Leaders must articulate exactly what needs to be changed, providing concrete examples like showing up earlier, taking more calls, or improving the quality and speed of work. Feedback should focus on altering behaviors constructively without resorting to personal attacks.
Leila Hormozi emphasizes the necessity of truthfully telling people where they stand. She draws a distinction between being "nice," to avoid conflict, and being "kind," which involves taking the more challenging but appropriate action for someone else’s benefit. When delivering critiques, she ensures the feedback is not hurtful by specifically telling team members what they can do to improve their performance.
The anecdote about Alex meeting with a YouTube content creation team implies the importance of continuous monitoring and improvement of standards. Leila Hormozi uses daily analogies, like the "shopping cart test," to illustrate how leaders must handle even minor issues promptly. Such actions reflect a culture of competitiveness and attention to detail.
Hormozi also acknowledges that external interactions reveal higher benchmarks, leading to continuous reassessment and improvement within the team. He describes their current effort to uphold and reset standards as a "season of standards," recognizing that the bar must continually be raised as the company grows.
Leila Hormozi underlines the ongoing nature of resetting standards, especially when dealing with underperforming teams. Establishing new benchmarks r ...
Effectively communicating and enforcing standards with a team
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