Skin in the game

I was walking along the strip of a shopping mall near Stanford University during the holiday break when I heard two people met and exchange pleasantries. “How are you today?” One of them said, “Just getting myself through the day.” That’s an interesting line. “Just making it through the day.” We need to be fair. Perhaps this person is depressed, sad, lonely or going through some challenging episodes of his life in which case we need to commend him for living life one day at a time. But suppose “just making it through the day” has become a norm for people in the work place? That would not be good; It would not be living, it’s mere existence.

Do you realize how boring it is to “just make it through the day”? I think a lizard hunting for food would be more interested in the day than anyone who is bored with life that the only tinge of excitement is awaiting weekends and payroll, then the feeling dissipates right after. Contrast this attitude to the owners of the business, they are not just making it through the day, they are making the most out from the day. Some will argue, “They own their businesses and their stakes are high.” My response is, “Yes, and that is why many will have to work for them because their stake on the game is not high enough. Almost every successful business leader and executive I have met started somewhere. When I listen to their personal stories, a recurring theme emerges. They did not just ‘work hard.’ Most people can do that. They can be pressured, intimidated and they can be cajoled or even incentivized to “work hard.” That drive is externally propelled. The successful leaders, on the other hand, have an intrinsic quality about them that drives them to do their best. They put their “skin in the game.”

Now what does this term mean? Popularly coined by Warren Buffet; the term means “To have a personal stake or investment.” “To be at risk financially because you have invested in something that you want to happen or simply put, you take ‘ownership’ of something when you have ‘skin in the game’.” Here is a good word for you. You are “entrepreneurial.” The question is, why do entrepreneurs behave the way they do?

Consider Ryan Holiday’s assessment. He says journalists are judged by other journalists with what is called “Peer Assessment and Evaluation.” Architects build buildings in order to impress other architects.  Advertising and creative agencies present ideas so they can win a Clio while their clients foot the bill. Architects are judged by other architects and so forth and so on. The only difference here is that entrepreneurs do not like to be judged by other entrepreneurs. They do not like their peers to approve of them because if they do, then there is something wrong with their business. They love being challenged and being contested because this means their businesses are doing well. They have skin in the game. What drives them and provides joy is the substance of what they create. “Win or lose” and “profit or loss” sometimes do not matter as much as the fulfillment of putting in the labor and risk of creating things and making things happen.

If only people in the work place would adopt this attitude and have skin in the game, you would find works of excellence all over the organization. And the same people would be investing in opportunities that would provide them with greater future success.

What about speakers, authors and trainers like me? Are we exempted? Well, technically not me as I have always been an entrepreneur before becoming what I am today. Do we need to have skin in the game? You bet. Those who are entrepreneurial will always care for their clients and not just for the fees they would be receiving. They would do their darn best to help by meeting client’s needs and help them succeed. They make the best of their craft. They are practitioners and real subject matter experts, so they provide more substance in terms of insights and can share their experiences. It is easy for them to have skin in the game.  Many clients complain, “Why are there so many consultants so full of themselves and do not resonate with the audience?” They speak well, tell jokes, entertain but when you get down to it their “show-off” exceeds their substance. Showing off one’s work is very natural and normal as long as the substance exceeds the show off. And only people with an entrepreneurial mindset can accomplish this.

Lastly, people who have skin in the game would want to simplify things. They want to solve problems with the least flair and fanfare. People without skin in the game love to complicate things and complexities kill businesses. If they are rewarded for their perception (not accomplishments), the more they would want to complicate things. This may be the reason why many sups and middle managers slow things down, hold endless and meaningless meetings, play the ego trip just wanting to feel important. Not the pilot of a plane he or she is flying. Of course, the pilot wants to make sure everything is right.

Be a craftsman. Be entrepreneurial. Put your skin in the game without which you will never have depth whether it be in business, relationship, a profession or a career. Commit to a life of delivering excellence. Success belongs to those who are willing to go the extra mile. Because when they get there, they will find nobody (well, maybe just a few) but those who put their skin in the game.

(Mark your calendars on Jan. 25, 2019 for the much-awaited event “Power Up for Peak Performance”! It will be happening at the Samsung Hall, SM Aura, BGC. This whole-day event featuring a power-packed cast of fantastic speakers will take place from 9 a.m. to 5 p.m. For further inquiries or advanced reservations, contact April at +63928-559-1798 or register online at www.powerup.ph)