Podcasts > The Game w/ Alex Hormozi > How To Raise Your Standards TODAY w/ Leila Hormozi | Ep 795

How To Raise Your Standards TODAY w/ Leila Hormozi | Ep 795

By Alex Hormozi

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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How To Raise Your Standards TODAY w/ Leila Hormozi | Ep 795

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How To Raise Your Standards TODAY w/ Leila Hormozi | Ep 795

1-Page Summary

Raising and Upholding High Standards

The Importance of High Standards

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.

Elevating Standards at All Levels

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.

Tough Decisions to Maintain 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.

Hiring and Retaining Top Talent

Rigorous Vetting Process

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.

Compensating and Retaining High Performers

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.

Communicating and Enforcing Standards

Clear, Constructive Feedback

Alex advocates providing specific feedback on needed improvements, not vague critiques. Leila distinguishes between being "nice" to avoid conflict versus delivering "kind," constructive feedback.

Consistent Accountability

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

Additional Materials

Counterarguments

  • High standards must be balanced with realistic expectations to avoid burnout and turnover.
  • Leaders who are too demanding may create a culture of fear, stifling creativity and innovation.
  • Removing low performers quickly can be short-sighted; investing in development might yield better long-term results.
  • Dismissing team members solely based on performance metrics can ignore the value of diversity, loyalty, and institutional knowledge.
  • Upholding company standards over individual sentiments can sometimes lead to a lack of empathy and a toxic work environment.
  • Rebuilding teams with higher-caliber hires assumes that talent is the only factor in team success, which may not account for team dynamics and culture fit.
  • A rigorous vetting process might inadvertently exclude good candidates who don't perform well in interviews or under test conditions.
  • Compensation is not the only factor in retaining high performers; work-life balance, company culture, and career development opportunities are also important.
  • Specific feedback is important, but it must be balanced with encouragement and recognition of strengths to maintain morale.
  • Being "kind" rather than "nice" in feedback can be subjective and may still lead to miscommunication or perceived harshness.
  • Consistent accountability is important, but too much monitoring can lead to micromanagement and a lack of autonomy for employees.
  • Relentless reinforcement of new benchmarks can be exhausting and may not allow for flexibility in response to changing circumstances.
  • Leaders modeling expected standards is crucial, but they must also show vulnerability and admit mistakes to foster an open and honest culture.

Actionables

  • You can create a personal standard charter by writing down the values and standards you want to uphold in your daily life, such as punctuality, quality of work, or continuous learning. This document serves as a personal commitment and a reminder of what you strive for, much like a company's mission statement. For example, if punctuality is a standard you set, your charter might include a commitment to arrive 10 minutes early for all appointments.
  • Develop a feedback loop with a trusted friend or mentor where you regularly discuss your progress and receive honest, constructive feedback. This relationship should be with someone who understands your goals and can hold you accountable. For instance, if you're working on improving your public speaking, your feedback partner could attend your presentations and provide specific insights on areas for improvement afterward.
  • Implement a 'standard audit' at the end of each week where you reflect on instances where you either upheld or fell short of your personal standards. Use a journal to note these instances and plan corrective actions for the following week. If you notice you've been consistently late to meetings, you might decide to set alarms or reminders to help you manage your time better.

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How To Raise Your Standards TODAY w/ Leila Hormozi | Ep 795

Raising and maintaining high personal and organizational standards as a business grows

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.

Setting and upholding high standards is crucial for business success

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.

The founder or CEO must embody and exemplify the desired high standards to set the tone for the entire organization

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.

As a company scales, its standards naturally tend to dilute unless the leadership is intentional about continuously raising the bar

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.

Standards must be raised and enforced at all levels of the organization

Leaders must exemplify the standard they expect, operate at a high level, and rigorously select their teams based on these high standards.

Leaders need to be more demanding of themselves and their teams than anyone else in the company

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.

Allowing low performers to remain on the team will gradually drag down the entire organization's standards

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.

Elevating standards requires tough decisions and a willingness to make changes

The Hormozis describe the process of raising standards as challenging, involving the removal of underperforming team members and possibly rebuilding teams to align ...

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Raising and maintaining high personal and organizational standards as a business grows

Additional Materials

Counterarguments

  • High standards must be balanced with realistic expectations to avoid burnout and turnover.
  • The CEO's behavior is important, but the standards must be co-created with employees to ensure buy-in and relevance.
  • Rigidly high standards might stifle creativity and innovation if not managed with flexibility.
  • Enforcing standards at all levels can sometimes lead to a rigid hierarchy that may not be suitable for all types of businesses, especially creative or knowledge-based industries.
  • Being overly demanding can sometimes create a toxic work environment and reduce job satisfaction.
  • The concept of "low performers" can be subjective and may not account for individual circumstances or different types of contributions to the team.
  • Tough decisions regarding personnel should be balanced with support ...

Actionables

  • You can create a personal standard manifesto to clarify your own high standards. Start by writing down the values and standards you want to uphold in your personal and professional life. This could include punctuality, quality of work, or continuous learning. Review and update this manifesto regularly to ensure it reflects your evolving standards and use it as a benchmark for your actions and decisions.
  • Develop a self-assessment routine to evaluate how well you're embodying your standards. At the end of each week, take time to reflect on specific instances where you either upheld or fell short of your standards. Use this insight to create a plan for the following week, focusing on areas that need improvement. This practice helps maintain a high level of self-accountability and continuous personal growth.
  • Initiate a peer accountability ...

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How To Raise Your Standards TODAY w/ Leila Hormozi | Ep 795

Hiring and retaining top talent that meets elevated standards

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.

Thoroughly vetting and assessing candidates is critical to upholding standards

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.

Compensating and retaining top talent is essential for sustaining standards

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 ...

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Hiring and retaining top talent that meets elevated standards

Additional Materials

Counterarguments

  • Thorough vetting can sometimes be too rigid and potentially exclude diverse candidates who may not fit traditional criteria but could offer unique value to the company.
  • Leaders' direct involvement in the assessment process can be beneficial, but it might also create bottlenecks and slow down the hiring process, especially in larger organizations.
  • Reviewing recordings of all interviews may not always be feasible or the best use of a leader's time, and could lead to micromanagement.
  • Rejecting candidates at the final stage consistently might indicate flaws in the earlier stages of the recruitment process, leading to wasted resources and candidate frustration.
  • While compensating and retaining top talent is important, overemphasis on compensation might lead to a culture driven by financial incentives rather than passion for the work or company mission.
  • Adequate incentives are important, but intrinsic motivation and a supportive work environment can be equally or more importan ...

Actionables

  • You can create a personal standard checklist for evaluating your commitments and relationships, ensuring they align with your values and goals. Start by writing down your core values and goals, then for each new commitment or relationship you consider, ask yourself if it meets the criteria on your checklist. For example, before joining a new club or team, check if its values and objectives match your own.
  • Develop a self-review habit where you record and assess your own performance in various tasks, much like an interview self-analysis. Record yourself practicing a skill or hobby, then review the footage to identify areas for improvement. For instance, if you're learning to play the guitar, record your practice sessions and watch them to pinpoint mistakes or areas where you can improve your technique.
  • Implement a ...

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How To Raise Your Standards TODAY w/ Leila Hormozi | Ep 795

Effectively communicating and enforcing standards with a team

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.

Clear, specific, and constructive feedback is key to upholding 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.

Consistent follow-up and accountability are required to maintain standards

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 ...

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Effectively communicating and enforcing standards with a team

Additional Materials

Counterarguments

  • While specific feedback is important, there is a risk of micromanagement that can stifle creativity and autonomy if feedback is too prescriptive.
  • Personalized feedback, while well-intentioned, may not always account for systemic issues that affect performance, such as resource constraints or organizational culture.
  • The distinction between being "nice" and "kind" can be subjective and may lead to misunderstandings about the intent behind feedback.
  • Consistent follow-up and accountability can sometimes create a high-pressure environment that may not be suitable for all team members, potentially leading to burnout.
  • A culture that focuses too heavily on competitiveness and attention to detail may inadvertently discourage risk-taking and innovation.
  • The concept of a "season of standards" suggests a periodic focus on standards, which could imply that there are times when standards are not prioritized, potentially leading to inconsistency.
  • Continuous reassessment and improvement can lead to a moving target that may frustrate team members if new benchmarks are set too frequently.
  • Addressing every minor iss ...

Actionables

  • You can create a personal feedback diary to track your progress and behaviors, noting down instances where you could have given clearer feedback and how you might improve next time. This diary would serve as a self-accountability tool, helping you to reflect on your daily interactions and identify patterns or areas for improvement in your communication.
  • Develop a habit of conducting weekly personal reviews where you assess your actions against your own set of standards. During these reviews, write down any deviations from your standards, analyze the causes, and plan specific steps to address them. This practice encourages self-discipline and helps maintain a culture of continuous improvement in your personal life.
  • Initiate a "kindness audit" at the end of each day, where you reflect on your actions and decide i ...

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