Sometimes I write posts about business ideas I've found to be particularly helpful. Today, I am writing about a concept that I would call "foundational," called the Gap and the Gain (which was created by Dan Sullivan of Strategic Coach). The base concept is simple – nonetheless, understanding and applying it can have transformative effects. The central concept is that you can be successful and happy or successful and unhappy … and the difference between the two is likely how you choose to measure your results.
Are you focused on the gap (all the things you still don't have) or the gain (all the things you already have)?
As an entrepreneur whose business is based on innovation, one of my unique abilities is being able to think about what's possible … and then find the golden thread from where we are to where we want to be. It's why I believe one of the "secrets to success" is to become comfortable being uncomfortable. Why? Because almost anything you want is beyond your current capabilities (otherwise, you'd already have them). Being able to transform the goal into a directional compass leading you in the right direction is easy for me, and gives me energy.
But, that unique ability comes with a pretty obvious drawback … I'm never where I want to be (because I'm constantly looking at the horizon, and as I move towards it, the horizon continues moving). This is the curse of many entrepreneurs. They live and die without a fulfilling sense of accomplishment because they're always focused on the next mountain. The progress that they've made getting to here, and the confidence they built getting to here, raise the bar of what's possible. Instead of focusing on the progress and wins that got them where they are, they monomaniacally focus on the gap between the current reality and their new shiny goal.
The distance between where you currently are and where you want to go should be motivating. In fact, I'd argue that the ability to stretch your vision further is a skill you should reward rather than punish. It is simply a matter of perspective. Measure from where you started, but don't lose sight of the bigger future. One pushes you from behind, and the other pulls you forward.
That's the gap and the gain, and it's a great lesson that is useful in businesses and life in general. Ultimately, you're in control. You get to decide what you focus on, what it means, and what you choose to do.
Personally, probably the most important way this lesson has impacted me was in making more of the time left with my dad while he was dying.
That video is about a year that brought my Dad's death, the forced sale of my company by venture capitalists, and a divorce (in that order). In many respects, it was a horrible year … a year where it would have been easy to focus on the gap rather than the gain.
Luckily, sometimes, life's darkest days bring the greatest gifts … if you are willing to look for them.
One of my biggest takeaways from that struggle was about the time value of life.
In finance, the "time value of money" refers to the principle that money's purchasing power varies over time (meaning, money today has more purchasing power than money later). In part, this is because the value of money at a future point in time might be calculated by accounting for other variables (like interest earned, or inflation accrued, etc.).
It occurred to me that a similar calculation applied to life … or living.
During the last part of my dad's life, it was easy to focus on what we were lacking … time … we would have done almost anything for a little more time.
In his last year, things that used to be unimportant, or even mildly irritating, took on increased importance. For example, a dinner together became almost a sacred event; a kiss goodnight was truly heartfelt, and saying goodbye meant something … because it could be the last time.
Because of that focus, he took more "life" out of that time. Necessity is often the mother of invention. While I wouldn't have chosen the situation, it changed his mindset (frankly, it changed our mindset), and as a result, we increased the amount of life we squeezed out of that little bit of time.
Obviously, the choice to make more of life shouldn't wait for the death of a loved one or a similar crisis.
We can choose to focus on what we want and what we gained to make the most life out of whatever time we're given.
I spent a lot of that year moving away from pain when I could have been moving toward opportunity. I'm grateful I learned that lesson before he passed.
To close, I want to leave you with a lesson from my dad that really stuck with me.
The difference between good and great is infinitesimal. People who are good take advantage of opportunities … but people who are great create them. ~ Jacob Getson
It's a conscious choice we can all make.
Hope that helps.
If you want to learn more about the specifics of the "Gap and the Gain," Ben Hardy wrote a great article on the subject.
The toll of COVID-19 on mental health, productivity, and GDP is tough to quantify. Yet, even at a glance, it's clear that the impact of the quarantine and isolation are significant enough to warrant serious consideration independently from the medical implications of the virus.
The numbers from the above chart aren't perfect, but they are from a Harvard study, so I'll assume they are at least somewhat credible (unlike a lot of what you read on the Internet these days).
To put it in perspective, that $16.2T estimate of the total economic cost of COVID-19 in the U.S. is $10 trillion more than the estimated aggregated costs of the post-9/11 wars.
You can click the chart to view other countries interactively.
There are many things to consider as you look at this chart.
First, rising wages aren't necessarily a sign of a recovering economy – though wages have actually increased in most countries.
Next, in countries where wages have dropped, many have wage subsidies that have heavily compensated for the wage loss. As a practical matter, this tends to happen only in high-income countries.
Third, average wages can increase with unemployment due to the compositional changes of the labor market – both due to lower-income jobs being the first to be cut and also due to fewer people working in general. Brazil is a great example of this.
Looking at the US, unemployment is going down while average wages are increasing. That seems terrific (perhaps even surprising). The vital question is … how much of that is due to economic stimulus and how much is real recovery? To some degree, necessity is the mother of invention and the US adapted quickly.
What do you think? Are we out of the woods? Guess time will tell.
I enjoyed the chart, and had a couple of different takeaways:
Many companies tried to capitalize on the streaming wave by launching half-baked streaming services, but it's clear that the pioneers are still extending their lead on the fast followers.
Despite Netflix already being the industry leader, they saw a 34% increase in 2020.
China's largest provider – Tencent Video – only has 120M users, which is about 8% of China's population. In contrast, Netflix has 74M US users, which is about 23% of the population.
The New York times is the only News subscription source big enough to make the list, yet it's at the very bottom with 6M users. Though, it did see a 61% increase in 2020.
Disney+ grew 95M in its inaugural year, which is a credit to the brand recognition Disney holds.
Interesting stuff and large numbers!
How will the world re-opening impact those numbers? How about 5 years from now? What do you think?
Will virtual reality and augmented reality start to impact these numbers?
With that much money and on the line, I expect this to remain an industry segment primed for innovation, growth … and a few surprises.
I remember when my son finally got smarter than our dog. For the record, it took longer than I thought it would.
With respect to human intelligence, language is likely the first domino. It allows "chunking" and makes learning new things more efficient, effective, and certain.
Language is powerful in-and-of-itself. Using language consciously is a multiplier. Today, I want to focus on one such use of language – the power of naming things.
The Power Of Naming Things
“I read in a book once that a rose by any other name would smell as sweet, but I've never been able to believe it. I don't believe a rose WOULD be as nice if it was called a thistle or a skunk cabbage.” – L.M. Montgomery, Anne of Green Gables
Before I go into detail, I shot a video on the subject, with a few examples from our business.
Having a shared language allows you to communicate, coordinate and collaborate more efficiently. But it's hard to have a shared language when you're discussing something intangible.
That's where naming comes in. When you name something, you make the "invisible" visible (for you, your team, and anyone else who might care).
I've often said the first step is to bring order to chaos. Then, wisdom comes from finer distinctions. Naming is a great way to create a natural taxonomy that helps people understand where they are – and where they are going.
I like thinking of it in comparison to value ladders in marketing.
Each stage of the value ladder is meant to bring you to the next level. By the time someone gets to the top of the value ladder, they're your ideal customer. In other words, you create a natural pathway for a stranger (meaning someone who doesn't know you well) to follow, to gain value, trust, and momentum onwards … ultimately, ascending to become someone who believes in, and supports, what you offer and who you are.
Ultimately, successful collaboration relies on common language. That is part of the reason naming is so important. The act of naming something makes it real, defines its boundaries and potentialities, and is often the first step towards understanding, adoption, and support.
Creating "Amplified Intelligence"
There are always answers. We just have to be smart enough. – John Green
Here is an example from our business. When we first started building trading systems, all we had was an idea. Then we figured out an equation (and more of them). Next, we figured out some methods or techniques … which became recipes for success. As we progressed, we figured out a growing collection of useful and reliable ways to test, validate, automate and execute the things we wanted to do (or to filter … or prevent).
For someone who didn't understand the organizing principles, it probably seemed like a mess. Compounding the problem is that fear, uncertainty, and doubt are inhibitors to potential customers and stakeholders (like the employees working in a business).
Coming up with the right organizing principle (and name) makes it easier to understand, accept, and adopt. For example, many traders and trading firms want to amplify intelligence – meaning they were looking to make better decisions, take smarter actions, and ultimately to perform better (which might mean making and keeping more money). To help firms amplify intelligence, we created the Capitalogix Insight Engine (which is a platform of equations, algorithms, methods, testing tools, automations, and execution capabilities). Within that platform, we have functional components (or modules) that focus on ideas like portfolio construction, sensible diversification, alpha generation, risk management, and allocation strategies. Some of those words may not mean much to you, if you're not a trader, but if you are it creates an order that makes sense and a path from the beginning to the end of the process.
It makes sense. It explains where we are – while informing what might come later.
The point is that naming things creates order, structure, and a contextual map of understanding.
It a compass heading that we can use to navigate and guide in uncertain territory.
From a functional perspective, the most interesting data point to me is that Zoom has cracked the top 20 … but only barely. I would be interested to see this broken up into time-per-visit to see how that tips the scales.
From a humorous perspective, only three sites weren't US-based … and they're all porn sites.
As an aside, one of my more popular posts has been on how much time people spend on Pornhub. I don't know what this says about society, but it certainly says something.
I have always believed that you can predict a lot about your future, based on the quality of the people you spend the present with.
That is why I think participation in quality peer groups is critical.
Over the years, I joined several business-leader peer groups like Strategic Coach, Abundance 360, or Vistage. These groups are a great way to meet people and learn things … and they also provide you with access to the benefits of feedback from a group of trusted advisors, perspectives you might otherwise get from a counselor, and a flow of ideas and opportunities that wouldn't have crossed your mind or your desk. They allow participants to see, hear, and discuss things they don't normally think about, talk about, or even notice.
Peer groups are also great at bringing blind spots to your attention and connecting you to trends transforming industries and the world.
In these meetings, you often find a "nugget" in the discussion. Sometimes it stems from what is happening in the world. Sometimes it alerts you to potentially useful relationships, opportunities, or gadgets. And sometimes, the nugget comes from discussing a common problem or constraint (like the pandemic) with your peers.
This week, several of these groups prompted me to think about time (e.g., not wanting to sell time for money, wanting to live past 100, the "strangeness" of time during the past year, etc.).
Time is funny. Sometimes it seems to fly by … other times, it seems to stand still. Dan Sullivan uses the example of 10 minutes with a dying loved one compared to holding your hand on a stove for 10 minutes. One seems excruciatingly short, and the other seems excruciatingly long.
The average life expectancy for men in the U.S. is 76.
How many amazing vacations do you have left? How many jaw-dropping moments? How many fantastic meals? How many Super Bowls?
What about time with your parents or older relatives? It's easy to forget to call or miss an important event because "life happens" – but if you realize you may have already used 95% of your in-person time with that person … doesn't it become more special?
For contrast:
Would you rather spend that time dwelling on a mistake?
What about being angry at something out of your control?
What about doing work that drains you mentally and emotionally?
In my TEDx talk, I mentioned "living like you only have a year left" and how much more "life" we got out of the last part of my dad's life.
That is just an example, but clearly, it is worth taking the concept further.
To start, think of some of the activities you do, places you go, experiences you have that are special and make you feel like your best self.
Hitting Flow-state and creating something new and exciting;
Taking an amazing vacation and experiencing something completely new;
Having a moment with someone you love that makes you stop and say – "Wow!"
Making a difference in someone's day or giving back to your community;
Experiencing peace and relaxation;
Feeling pure joy.
It's easy to get lost and take for granted these moments when they happen, but when you think about how much time you have left … they take a whole new meaning.
How can you maximize the time you have left? Fill it with the best experiences, activities, and people you can.
To start, think about different time frames:
What activities could you commit to doing at least once a year?
What activities could you commit to doing at least once a month?
What activities could you commit to doing at least once a week?
What activities could you commit to doing at least once a day?
Make those lists … it is a simple way to get a better return on the time value of your life.
Seriously, try it.
Let me know how it worked for you – and what you chose!
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How can you maximize the time you have left? Fill it with the best experiences, activities, and people you can.