Tuesday, May 24, 2011
Sunday, May 22, 2011
8 ways to make credible promises
So succeed in life, in your career, in your business or even in your love life, depends on your ability to create assurances, that is, mechanisms that show to the other party that it will be VERY difficult for you to NOT keep your promise.
From my research, here are the 8 ways to make your promises credible, that is, to create ASSURANCES:
- Small steps
- Reputation
- Contracts
- Mandated agents
- Cutting off bridges
- Irreversible communications
- Brinkmanship
- Teamwork
It can be very legal, or a simple agreement (in writing) between two people.
Let's say, for instance, that you're a smoker and you promise to your wife that you will stop smoking within a year.
Your (smart) wife is a subscriber to this (great) blog so she asks you, "Are you really serious about quitting cigarettes?"
You say YES.
Then, she writes up a one-page agreement which you will sign, and this agreement says that if you do not stop smoking within a year, you agree to donate $5,000 to a charity of your choice.
Of course, how this thing unfolds depends on the kind of relationship between you and your wife.
But my point is that a simple verbal promise is not enough: it doesn't really reassure the other person, nor does it compel or motivate you to keep your promise.
It is too easy, after one year has passed, for a person to say, "Well, I tried to stop smoking. I'll try again for another year."
Now, I know it is NOT easy for a person to stop smoking. So I empathize with those who try to stop, and I admire their courage for deciding to stop.
So you can take another example, like a boss promising to an employee that within 9 months, she will get a salary increase.
This female employee, also a smart woman who subscribes to my blog (LOL!), asks her boss to put down in writing that he will increase her salary by __ % within 9 months.
Not that this contract or agreement is legally binding, but it sure will motivate her boss to do his very best to keep his word.
I will talk more about the other 7 ways to create assurances, but my point is simply that to succeed in this world, you need to keep your word AND you need to trust that others will keep their word.
Good intentions are not enough; these 8 ways of creating credible promises (or assurances) will help you to keep your word and will motivate others, psychologically, to do their best to keep their word.
Please share this post with your friends if you found it useful. Share the love, share the wealth!
Saturday, May 21, 2011
To succeed, create assurances, not promises
Success in life depends on "assurances" not "promises." (Both promises you make and promises that other people make to you).
An assurance, is a promise that has been programmed, in some way, to result in its fulfillment.
A promise, on the other hand, is just a promise; it's just a verbal statement of what you intend to do. You might, for various reasons, change your mind later on (in which case the other person loses, and you also lose your credibility).
So how do you create ASSURANCES rather than PROMISES?
The secret is to focus on PLEASURE and PAIN.
In other words, make sure that if you keep your promise (to your friends, family, clients, etc.), you will gain something valuable, and also that if you fail on your promise, you will SUFFER something significant.
For example, the two young founders of Notehall.com intiially "promised" to Dragon investors that within 24 months, they'd generate 10 million dollars in revenues (or a similar amount, I don't remember exactly).
The investors' reaction was, understandably, one of disbelief. They even thought these two kids were a bit arrogant.
But then came the punch line from the two entrepreneurs: "If we don't deliver on that promise, we both will give you our share of the business."
In other words, they would lose the business they founded if they did not deliver on the promise!
This time, the investors were very impressed! Ah, they thought, they're putting their money where their mouth is!
So guess what? They got their investment from some of those investors!
You can check out Notehall.com, they're successful.
Now, in your case, you might not be an entrepreneur seeking capital. You might be a job seeker or an entrepreneur seeking joint venture partners.
Regardless, this principle will still serve you well.
In other words, create assurances, not promises. Nobody believes in a promise, and those who do are not serious about the deal they are getting into.
Notice, by the way, that an assurance is not the opposite of a promise; it includes yet transcends the promise.
A promise is like an atom, an assurance then is the molecule: it includes yet transcends the atom.
A promise is like a body part (like your right hand) while an assurance is the entire body; it has more power.
In the end, when you look at success and how it happens, it usually depends on other people collaborating with you or buying from you or partnering with you.
Yet, they (the smart and rich ones) won't deal with you if you only offer promises. You've got to be creative and create assurances where, if you fail to deliver, you are penalized, but also you are rewarded if you perform.
Your clients and partners, therefore, know that you are likely to keep your promises.
In a future post, I will talk about 8 secret methods for making your promises credible, that is, promises that will be instantly believed by other people.