5 Ways to Go Global; The Soap Queen; Ashiana Housing Video; Dan Pink Interview
March 28, 2013
Dealing with Enemies; Sensitive Topic; Meeting Rules; Barcelona Visit
April 11, 2013

300% ROI; 3% Solution; Games Buyers Play; Dr. Laurie Bassi

"…keeping you great" 


biggest single predictor of a company's ability to beat its direct
competitors in its industry AND the overall stock market was the amount the
company spends on training its people.


Dr. Laurie
Bassi, author
Good Company

Games Buyers Play
– the
latest "Growth Guy" column
highlights pitfalls in selling a business – and
the tricks buyers use to drive down the price. I actually met a couple
professors who teach acquirers how to do this to unsuspecting entrepreneurs.
Seller beware!

3%, Use it or Lose It — Patrick McGovern, the famed Chairman and Founder of
International Data Group (IDG), was the first celebrity CEO to keynote the
executive program I launched and held at MIT called "The Birthing of Giants."
Today, one of the

400 wealthiest entrepreneurs who recently gave $350 million
to MIT for brain research, he impressed me with his three simple rules for
growing each division of his company. Scattered all over the planet launching
tech publications in a fast charging industry, each leader had to hit three
targets, three of every five quarters:

  1. Grow twice
    the rate of the local market – his way to set revenue targets in each country

  2. Take 10% net
    to the bottom line – and spending on growth wasn't an excuse for low profit
  3. Spend 3%
    of payroll on training – use it or lose it

McGovern explained that the only investment critical to
growth was employee and management development, yet he knew that under the time
pressure of having to grow the business and cost pressures of having to net 10%,
the first thing leaders will do in the short run is cut out the time and cost of
training. As CEO, like Jack Welch, McGovern knew this was the one issue he had
to stand firm about and mandate. The job of the CEO is to make the best
decisions today that have a long term positive impact on the business tomorrow.

300% ROI — and through some of the most exhaustive research ever
supported, training and development was found to out-return any other investment
a business owner could make – more than any R&D, hard, or capital investment. In
fact, companies that made this investment achieved:

24% higher profit margin

218% higher income per employee

86% higher company value

21% increase in productivity

300% reduction in employee turnover

a return per dollar invested of $6.72

Here's a link
to a white paper Bud Arquilla, CEO of the Gazelles200
initiative, wrote to detail the findings – an investment Jack Welch calculated
to provide an infinite return.

Drives Me Nuts — therefore, if there is one thing that pains me the most,
it's when a CEO lets their team steamroll them, complaining about having neither
the time nor willingness to budget for training and development.

Dr. Laurie Bassi — whom I quoted above, is author of Good
Company: Business Success in the Worthiness Era
; was director of research at Saba Software; director of two
US government commissions; and a tenured professor of economics and public
policy at Georgetown University. She is also the chair of the board at Bassi
Investments – an investment firm that invests in companies with superior human
capital management capabilities – consistently outperforming the S&P 500.
Previously, she served as vice president for research at ASTD (American Society
of Training and Development) where she led a groundbreaking and exhaustive
multi-year research initiative that brought hard numbers to the "soft" world of
training and development. Book club members are receiving her book and she's
keynoting the upcoming

Leadership Summit in Orlando May 9 – 10
. Make the investment.

Verne Harnish
Verne Harnish
Verne Harnish is founder of the world-renowned Entrepreneurs’ Organization (EO) and chaired for fifteen years EO’s premiere CEO program, the “Birthing of Giants” and WEO’s “Advanced Business” executive program both held at MIT. Founder and CEO of Gazelles, a global executive education and coaching company with over 150 coaching partners on six continents, Verne has spent the past three decades helping companies scale-up. The “Growth Guy” syndicated columnist, he’s also the Venture columnist for FORTUNE magazine. He’s the author of Scaling Up (Rockefeller Habits 2.0); Mastering the Rockefeller Habits; and along with the editors of Fortune, authored The Greatest Business Decisions of All Times," for which Jim Collins wrote the foreword. Verne also chairs FORTUNE Magazine’s annual Leadership and Growth Summits and serves on several boards including chairman of The Riordan Clinic and the newly launched Geoversity. He is an investor in many scale-ups. A father of four, he enjoys piano, tennis, and magic as a card-carrying member of the International Brotherhood of Magicians.