The Difference Between Good and Great!

There is a clear and oftentimes under appreciated distinction between the average, the good and the great. Most believe that they don't possess the resources, education, connections, time, money or power to set themselves up as a truly successful and revered individual. And make no doubt this doesn't just hold true for financial success. When you look around and identify the people you truly respect and admire, what identifying qualities do they possess? Is their success in your eyes predicated on their checking account, their relationship with their family, the respect they hold in a particular community or industry, spiritual or athletic success? At the end of the day, what one person considers success might not be enough for another. And that's ok! Having the opportunity to deal with some of the world's most powerful and respected corporate leaders across dozens of industries, identifying what sets them apart continues to be an unbelievable journey.

Working on Wall Street for nearly a decade, I've oftentimes found myself asking, "how am I ever going to be as successful as the individuals sitting across the table from me"? Who are they you ask? CEO's and CFO's of some of the most profitable companies in the automotive, hospitality and real estate industries with educations encompassing the best universities in the world and last names that rhyme with Fennedy and Bassetta. The companies they managed ranged greatly in scope, but the demeanor each leader possessed was astonishingly consistent.

Compassion:

Traditionally, when picturing a corporate titan, most would imagine a ruthless and cutthroat machine, willing to destroy anything and everything that threatens to come between him and success. (Side Note: I use the terms "him" or "his" for brevity purposes, but I've been fortunate enough to deal with many fascinating and powerful women throughout my career as well) This in itself is an unbelievably archaic and dated mentality, reserved for the Dick Fulds (Former CEO of Lehman Brothers) and Jeff Skillings (Former CEO of Enron) of the world. What struck me hardest was the commitment the leaders I dealt with had to not only their own professional development, but that of those around them. They knew that they were only as good as the team they relied on, and that meant everyone from their senior leadership team all the way down to the junior staff crunching numbers and putting together presentations day in and day out. They rarely said the words "I" or "me" and instead focused on "we" and "us". Understanding and appreciating the efforts of those around them not only created a collaborate and productive work environment, but produced the "secret sauce" that was the differentiator in a never ending race for innovativeness. Leadership knew it was often the junior employees that had the most relevant pulse on where trends were heading, and their feedback and commitment was just as critical to the continued growth of their business as their own. When growing and building your team and business, it’s important to remember one of the most valuable resources you have in your professional tool belt are the individuals doing the "dirty work". A construction worker can show you basic maintenance skills, a recent college grad can educate you on the ins and outs of social media while the brand new real estate agent might be able to think of a creative new way to market a property. Remember, a boss is someone who gives orders from a place of unbridled superiority, creating a culture founded on dissent, while a leader is someone who is on the front lines with his soldiers, fostering a culture of trust by leading with actions, rather than words.

Patience / Persistence:

Patience, or as I like to think of it, delayed gratification, is a paramount trait that was consistent throughout leadership teams. Now, there will always be instances when an opportunity will arise that calls for a quick decision with less than ideal diligence, but these situations should be abnormal in their frequency. Keep in mind, I’m not speaking about corporate decision making and the politics that is inherent in that process, but instead focusing on the leaders themselves, and the patience they displayed throughout their careers. In less instances than you would think, were the corporate leaders born into or handed their success. They were hustlers, grinders, individuals who did whatever it took to get to where they wanted to be. Dr. Thomas Sculco, the Chief of Surgery for the Hospital for Special Surgery in New York City, considered by many to be one of the top surgeons in the country running the number 1 hospital in the world for orthopedics, mopped floors at a pizzeria all throughout medical school to pay his bills. Larry Ellison, prior to founding Software Development Laboratories (now known to most as Oracle), was raised in a poor suburb of Chicago by his aunt and nearly died from pneumonia.

It's painfully easy to say, "I'll never be great" or, "the hand I was dealt is just too difficult to achieve true success". But that is exactly the mentality that divides the good from the great. A slight shift in mentality to "when" rather than "if" will help define where your efforts lie. "When I purchase my first property" will lay the foundation for the efforts needed to get there rather than "if I purchase my first property". If having the patience to forego going out to eat, taking vacations or buying that 'pair of shoes you just gotta have' is what it takes to afford the down payment on your first / next property, making the sacrifice will come much easier if you've already resigned yourself to achieving it. A goal without a plan is just a wish, so the single most critical factor between working towards success and wasting your time is having the presence of mind to define your course of attack before striking. There are two concluding thoughts I want to raise before moving on. First of all, don’t get discouraged by the amount of time it takes to learn the ins and outs of the strategies you hope to implement. Investors who have been wildly successful in real estate for decades constantly raise attention to the fact that they are still very much students of the industry. Rather than getting overwhelmed, knowing there are always new way to succeed if your first attempts don’t work should provide a surprising amount of encouragement. And finally, don’t become a victim of the fabled, “paralysis by analysis” which oftentimes acts as an insurmountable roadblock for new entrants into the industry. Being tactical, mindful and patient while learning and developing your own strategies is one thing, but all your hard work will never pay off if you never take first step and actually execute.

Risk Conscious:

Imagine you’re looking to purchase a vacation condo in Miami for you and your family, and have narrowed your search down to only one building. Within that building there are only two units available, one of which is on the top floor of the building, offering unobstructed views of the city, while the other is located on the first floor, providing the easiest method of escape in the event of an emergency. Which is more appealing? The key is that neither choice is right or wrong as each has its own benefits and negatives. Now consider a CEO looking to acquire one of two companies, one of which is incredibly young, providing the potential for massive returns, but also a high risk of failing and providing no returns at all, while the other is an older and established company that provides consistent returns year over year, but has no intention of innovating yet a much lower risk of failing. The only way the CEO can determine which company to acquire is to take a step back and understand his own company’s risk profile. Will they be able to withstand a massive failure? Are the consistently mediocre returns good enough? This is the same thought process that investors need to conduct when focusing on real estate. Ask yourself, now that I’ve developed my strategy and learned my niche, built my team and identified key targets, can I weather the storms that come with actually executing and putting it all together. Can I afford a $700,000 flip or should I stick with $150,000 homes?

Most organizations take risks, but what separates industry leaders from the pack is the frequency with which they take them, and the amount of diligence that went in beforehand. No one talks about the 9,000 shots Michael Jordan took throughout his career and missed (28 were missed potential game winners). What people (and history) focus on are his 6 championships, 6 MVP awards, 14 all-star appearances and 32,000+ points scored throughout his career. MJ trained harder and with more intensity than any player in his day and trusted his process, despite knowing there would be misses and failures along the way. Understanding too many failures at the onset of his career would crippling, he insured the odds would always be in his favor, by training harder than any competitor, to ultimately lower the inherent risk in each shot. But the key was, he took the shots. He never let one missed or made shot define his career. Each shot was a new opportunity to build upon and redefine his legacy. That is the best part of real estate. By keeping your risk taking to a manageable level, no one success or failure will ever define your career. Having the patience to pass on potential home run opportunities because of the potentially devastating effects they could have on your ability to stay in the game might make the difference between a long tenured career or a one and done.

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Damian LoBasso is the Founder and Chief Executive Officer of Compass Management Consulting LLC, a business management group based out of New Jersey, specializing in providing small businesses with bookkeeping help and accounting hep.  Compass was created out of a need for cost effective and highly efficient professionals to give business owners an opportunity to focus on what they do best......grow their business.