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About this lesson

We look at how to get our team to take action towards our desired outcome. In order to drive that action, we need to get leverage on the team.

Exercise files

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Cost Assessment
55.2 KB Cost Assessment - Solution
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Quick reference

Cost Assessment

In order to fully understand the results achieved you need to assess the costs. In this module, you will learn how to get your team to take action towards the desired outcome by using leverage and you will understand what it will cost if you don’t meet the desired outcome.

When to use

To help reach the desired outcome, you should always do a cost assessment to understand what is at risk if you don’t meet the outcome. You should also use leverage to motivate your team to meet the desired results.

Instructions

In order to drive that action, we need to get leverage on the team.

Leverage is that one piece that pushes you over the edge. Leverage makes us take that action. You want to make sure that you get enough leverage that there is a consequence if you don’t get the desired outcome or enough leverage that the reward if you do get the desired outcome.

Generally, you start with a pain point. If there is a pain point, that gets people into movement and gets them to change their behaviour.

To understand your leverage you must do a cost assessment. What will it cost if the desired outcome is not achieved? There are several different factors to take into account.

  • Time - What will it cost you in time? If you are working on a project and that project doesn’t get completed on time how much time are you going to lose? Are you going to lose the last 6 or 12 months in time that you have worked on the project?
  • Money - What is it going to cost you in money? Money is a great leverage piece to motivate your team. If we don’t get this done, we will lose X amount of money. Example: When GoDaddy first came out, they put all the investors’ money into a Super Bowl ad and that was the leverage. If that ad didn’t work out, they would have lost a ton of money.
  • Market Share - What is it going to cost you in market share? Are you going to go from the #1 company down to #10? How many clients are you going to lose if you are not successful?

You need to share your cost assessment with your team so everyone can connect to the leverage.

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  • 00:04 In this video, we're gonna look at step five.
  • 00:07 Get leverage. So what does that mean?
  • 00:10 Leverage is that one piece that just, it pushes you over the edge.
  • 00:16 It's going on that diet when the doctor tells you, hey your cholesterol's high,
  • 00:20 if you keep eating all this crap, you're gonna have a heart attack right,
  • 00:24 that's leverage.
  • 00:25 And what leverage does it really makes us take that action and
  • 00:30 that's what you wanna get with your team.
  • 00:32 And in yourself, you wanna make sure that you get enough leverage that there's
  • 00:36 a consequence and leverage can also be something positive couldn't it, okay.
  • 00:41 So you wanna make sure you get the leverage.
  • 00:43 Typically you start with pain because if there's a pain point
  • 00:46 that gets people into movement, it gets them to change their behavior,
  • 00:50 gets them to change how they feel, right.
  • 00:52 That's that pain when you get enough leverage, now momentum starts.
  • 00:57 If there's not enough leverage here, you may or
  • 01:00 may not get the results that you're looking for, okay.
  • 01:03 So the first piece of getting leverage is cost assessment.
  • 01:07 What is the cost?
  • 01:08 What will it cost your company?
  • 01:11 What will it cost your team?
  • 01:12 What will it cost your department?
  • 01:14 What will it cost you, if the desire outcome is not achieved.
  • 01:19 Okay, what will it cost, so what will it cost you in time?
  • 01:22 Time is a big one.
  • 01:23 If you guys are putting time into a project and that project doesn't get done
  • 01:28 or doesn't get completed successfully, how much time are you gonna lose?
  • 01:33 Is it six months, is it a year?
  • 01:35 Is it years?
  • 01:37 Okay, a lot of times that's great leverage if you're gonna lose that time.
  • 01:41 What's it gonna cost you in money?
  • 01:44 Money is a great leverage piece.
  • 01:47 If we don't get this done we would have lost all this money, okay?
  • 01:51 I love the story for GoDaddy, right.
  • 01:54 So when GoDaddy first came out,
  • 01:56 they put all the investor's money into a Super Bowl ad.
  • 02:00 And that was leverage.
  • 02:02 If that Super Bowl ad did not take off and
  • 02:05 they didn't get those customers coming in, that would've been a pretty bad gamble.
  • 02:09 But luckily for everybody, it worked out.
  • 02:11 So now we have GoDaddy, right.
  • 02:13 But that's big leverage.
  • 02:14 Hey, we're putting a ton of money into this thing,
  • 02:17 we better get the result, okay?
  • 02:19 The third thing, what's it gonna cost you in market share, okay?
  • 02:24 Are you gonna go from the number one company, down to number ten, right?
  • 02:29 How many clients are you gonna lose if you're not successful, okay?
  • 02:34 So you have to do a cost assessment and get very clear and
  • 02:38 very specific, and you wanna share that with your team, so
  • 02:41 that everybody can connect to what leverage that is.
  • 02:45 One of my favorite examples of leverage is,
  • 02:47 I have an executive coaching client and he runs an international global company.
  • 02:53 And we were working on a project and we were talking.
  • 02:56 I was looking for some leverage, I'm like what's the leverage
  • 02:59 That I can really use to get him to take action.
  • 03:02 And so here is what we came up with, I told him to think of a company or
  • 03:05 a person that he really didn't like, right.
  • 03:07 And this guy is very friendly he likes most everybody.
  • 03:11 I go think of one that you really dislike, okay and I had him do that.
  • 03:15 And then once he came up with that company, we put down a cheque, I had him
  • 03:19 write a cheque, write it out by hand, plug out the cheque book write out a cheque for
  • 03:24 $1,000 and made out to that company, right?
  • 03:28 For a job well done, that's leverage.
  • 03:33 And I told them, if we didn't achieve this outcome, that he was gonna take that
  • 03:37 cheque and he was gonna mail it off to that company, wow.
  • 03:42 And it wasn't the $1,000,
  • 03:43 it was the idea of getting that money to that company that really messed them up.
  • 03:49 And guess what, he never signed that cheque.
  • 03:52 Not even close.
  • 03:52 We took that goal and we crushed it.
  • 03:55 Because that leverage was back there, right?
  • 03:58 The leverage was back there.
  • 03:59 And all the things we've been talking about.
  • 04:01 Okay, makes sense?
  • 04:02 Good. So let's recap.
  • 04:03 So you have to get leverage that's step five.
  • 04:06 You have to do a cost assessment.
  • 04:08 What will it cost if the desired outcome is not achieved?
  • 04:11 And you have to get very clear and you have to share that with your team.
  • 04:15 What will it cost you in time?
  • 04:16 What will it cost you in money, market share, etc.
  • 04:19 Whatever it is for you guys that's really gonna hit home.
  • 04:22 We're gonna go a little deeper into this on the next video.
  • 04:25 So we'll see you there.

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