From: alexhormozi
A core philosophy emphasized in business is the importance of a “different way to do business,” one that relies on praise over punishment [00:00:05]. This approach aims to create a “shining Beacon” in the business world [00:00:05] and is considered “something worth fighting for” [00:00:08].
Personal Reinforcement and Habits
The speaker maintains a personal routine that includes daily affirmations, stating positive statements to a wall mirror as a form of self-encouragement [00:01:07]. This highlights the role of positive self-talk in maintaining personal well-being and productivity.
Praise Over Punishment Philosophy
This philosophy is central to the company’s vision [00:05:47]. There’s a clear distinction between an internal vision, relevant to employees and partners, and an external vision, which focuses on the broader community [00:05:13]. The goal is to build a profitable business by operating in a way that prioritizes praise over punishment [00:05:43].
The challenge lies in getting desired results without resorting to punishment when mistakes occur, requiring more skill [00:05:51].
Motivation and Discretionary Effort
In a reward or reinforcement-based environment, individuals utilize all their discretionary effort [00:06:01]. This contrasts sharply with businesses rooted in punishment, where people tend to exert the “law of least effort” – doing just enough to avoid getting fired [00:06:17].
Contrast with Punishment-Based Environments
Businesses that rely on punishment to drive performance, such as some in the PE industry, raise the bar, leading to high performers who are often “driven by anxiety,” “stressed out of their minds,” and may resort to unhealthy coping mechanisms [00:06:28]. While these environments can achieve high performance, they lose out on the valuable discretionary effort that employees would contribute if they felt reinforced and safe [00:06:58]. The aim is to build an environment where everyone works harder because they feel reinforced and secure [00:06:46].
Timing of Reinforcement
The timing of rewards and punishments is critical, as improper timing can lead to unintended learned behaviors [00:02:41]. For example, punishing a child for coming home late might teach them not to come home at all [00:03:14]. Similarly, delaying a reward too long can still teach something, but not the intended lesson [00:02:55].
Branding Through Positive Association
Personal branding and brand association are built through positive reinforcement [00:07:41]. When customers find value in a book, they are reinforced, and the rewards they get from applying its principles become associated with the book itself [00:07:44]. This positive association extends to the author and the brand’s merchandise. When someone wears a branded item, others who have experienced positive feelings associated with the brand will feel the same way towards that person [00:08:00].
Customer Feedback as Reinforcement
The content strategy is directly influenced by customer feedback, which acts as a form of reinforcement. The audience “train[s]” the creators with their clicks and eyeballs, indicating what content they find most interesting [00:14:17]. This feedback loop dictates the creation of more highly produced and edited videos, as these resonate more broadly and reach a larger audience, without diluting the core message [00:13:50]. This demonstrates leveraging customer feedback for business improvement.
The commitment to continuously improving content and “thinking of decades, not days” [00:15:10] reflects a long-term vision for evolution based on what the audience reinforces.