The Winning Way

to Success!

How to Win in Life and Enjoy the Journey.

RONNIE KAGAN

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 Disclaimer

All the information, techniques, skills and concepts contained within this publication are of the
nature of general comments only, and not in any way recommended as individual advice. The
intent is to offer a variety of information to provide a wider range of choices now and in the
future, recognizing that we all have widely diverse circumstances and viewpoints. Should any
reader choose to make use of information contained herein, this is their decision, and the
contributors, authors and publishers do not assume any responsibilities whatsoever under any
conditions or circumstances. It is recommended that the reader obtain their own independent
advice.

First edition 2007

Copyright 2007: The Business of Life Pty Ltd.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or Transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, without the prior written permission from the publisher.

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 To Brett and Bradley, you are an
inspiration to me. You have both
grown up to be fine young men and
I am so proud to be able to call you
my sons.

To my loving wife, Jane, thanks for

always being there for me, through
the good times and the steep
learning curves. You are a fantastic
friend as well as a loyal partner in
both love and life.

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 Content

How to Win in Life and Enjoy the Journey

Foreword Pg 5
Acknowledgements Pg 6
Introduction Pg 9
Six Fundamental Qualities of a Leader Pg 16
Communication Pg 27
Conflict Resolution Pg 30
Goals Pg 33
The Seven Essential Business Secrets Pg 41
Mastering the Art of Delegation Pg 52
The Four Keys to Becoming Rich Pg 64
Creating a Golden Chain of Referrals Pg 71
Conclusion Pg 95

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 Foreword

Ronnie Kagan's advice is original and

valuable. I have over 500 books on the art
and science of personal excellence, and I
rang Ronnie amongst the very top experts
in this field from around the world.

There are many business coaches and

advisers out there trying to teach from
textbooks, however with Ronnie’s
personal hands-on experience you will
enjoy the benefits not only in your own
business life, but in your personal life as
well.

Robyn Henderson, Networking Coach and

International Author

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 Acknowledgements

Thanks to all my teachers over the years,

those that have been kind to me and those
that have been cruel. You have all
contributed towards life.

The lessons I have experienced in life could

have made me bitter or better, I chose to go
down the better path. Was it always easy,
fun and enjoyable, definitely not, but with
hindsight was it worth it, absolutely.

The reason behind this e-book was that I

realised a while ago that you can either
learn lessons for yourself, from your own
experiences, or you can learn them from
others. If you chose to learn them from
others you will save yourself a huge
amount of time and a lot of pain, but it will

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require you putting your ego in your pocket
and being prepared to learn from others.

If someone like me, with no education,

other than the lessons I have learnt along
the path of life, can live an extraordinary life
today, so can you.

Irrelevant of your education or upbringing

you can succeed, but it will take two things,
a desire to start the journey now, (this is the
only time you will ever have), and then a
commitment to stay in the race, to complete
it and see it through to the end.

As I learnt from one of my mentors, true

leadership and character is not the desire to
start something, anyone can do that, but to
continue through with what needs to be
done until it is complete. To stay in the race,
long after the initial mood in which you

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made the decision in the first place, has
passed.

There are many people I could thank and

the list would be extensive, as I have
walked a long path and have crossed many
paths, but a few have stood out over the
years. As I mention these I reflect on their
caring and generous contributions, without
which I would be even scarier than I am
today.

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Introduction

Welcome to The Winning Way, How to Win

in Life and Enjoy the Journey

Whether you’re at the local pub, down at

the golf course, in the board room, or
watching sport, the conversation will
usually turn to success and how to make
money in today’s evolving world. Our
fascination with success is endless, and
when we see all the people who are
succeeding in a very short time period, we
start to ask, “What’s wrong with me?”

In today’s quick times, we see people

becoming millionaires within a couple of
years of venturing out on their own.
Usually age and education are not the
common denominator. We may catch
ourselves asking, “So what can the problem

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be with me? How can so many other people
be making so much money while I’m still
struggling to pay off my credit cards, get rid
of my debt, and be financially free?”

Everybody who enters into the conversation

will have different points of view, and
opinions will be strong, but conclusions will
generally be few. They are, of course, many
answers to the question of “How do I
become rich and succeed in business?”—
and I don’t profess to have the answer. Over
my years of being in business, I’ve
succeeded several times—and failed as
well—along the way.

I shall share with you some of the common

traits that have led me from poverty to
success and from failure to extreme wealth.

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With the amount of valuable information
that’s readily available via the Internet and
books, you really have to question why
most businesses fail. Statistically, we know
that 80% of all businesses don’t make the
five-year mark—and out of the 20% that do
reach the five-year mark, 80% go broke or
close their doors before they reach the 10-
year mark. This equates to a horrific 4% of
all businesses starting out that actually
reach the 10-year mark.

You must ask yourself why this happens.

I’ve come to the conclusion that although
knowledge is available to everyone, people
don’t know how to apply the knowledge
correctly. The key to your success comes
down to people—not only the people whom
you may employ or work with, but mainly
you.

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This e-book has been designed to enable
you to focus on the relevant information
that will assist you in becoming part of the
4% who do succeed in business—rather
than the 96% who, despite all their efforts,
fail and become a statistic. I shall focus on
the dos rather than the don’ts. What I’ve
learned is that you should definitely focus
on the positives and what you should be
doing rather than the negatives and what
you should not be doing—because whatever
we talk about, we bring about.

When we look at the average people who

start businesses, we realise that they’ve
invested everything they have in the
business. If the business fails, not only do
they end up feeling discouraged,
demotivated, and often financially destitute,
but they’ve lost time—which is probably the
most important commodity. So let’s enjoy

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the journey together as we walk through
these pages towards achieving your success.
I’m going to make several suggestions
throughout this e-book, and my
recommendation is that you actually
implement these exercises and check
whether you’re actually doing what’s
suggested rather than simply agreeing or
disagreeing with the information that
you’re reading.

Don’t rush through this e-book just to get to

the end, but rather understand the growing
process you’re going to be taking along the
way.

Knowledge is not power. It is the

application of that knowledge on a
consistent basis that creates and delivers
powerful results.

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I’ve come to realise that the most difficult
step for most people to take towards
changing their lives is learning to change
their internal dialogue—the one that’s going
on inside their heads. This is
understandable, as your past thinking has
created your current circumstances—and
yet, you’re going to rely on that same
thinking to create a different outcome.

This is a huge task. Now you probably

realise why so many people can never
change their circumstances, even though
they so desperately want to.

My goal in this e-book is to help you change

the base of your thinking, that internal
dialogue that’s kept you where you are for
far too long already.

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So, let’s get going. And along the way, don’t
question whether you like or dislike what
you read, whether you agree or disagree
with what I share with you, or whether
you’ve heard this information before or it’s
being brought to your attention for the first
time. Just give it a go—all of it—and you’ll
be eternally grateful for the lessons you’ll
learn along the path, the person you’ll
become, and the results you’ll attract into
your life at the conclusion.

The Winning Way in How to Win in Life is

designed to provide you with the
information you need to achieve the goals
you set for your participation in The
Winning Way.

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Six Fundamental Qualities of a Leader

I’ve come to realise that most businesses

have three areas they’re constantly trying to
address:
1. Where are we going?
2. How are we going to get there?
3. Why is no one talking to me? Why do
we have no real communication?

In this book, I’ve looked at addressing these

areas amongst many others.
It has been organised into sections covering
every area of activity that you’ll need to
undertake in order to get the best out of
your business and your life.

I’ve learned that there are six fundamental

qualities that all leaders need to possess if
they intend to succeed in business. These
are neither optional nor conditional, and if

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you don’t apply these qualities, you will not
succeed. Just like gravity, ignorance of these
“laws” will not release you from the
consequences of ignoring or denying them.

If a child crawls off of a two-story balcony,

even though he’s ignorant of the laws of
gravity, he will fall and hurt himself.
Likewise, if you’re ignorant of these
fundamental laws of leadership, you will
fail in business.

The first is vision. As a leader, you need to

see what you’re striving for with total
clarity. The clearer your vision, the greater
the likelihood of attracting into your life
whatever you’re seeking. If you have
negative thoughts, you will attract negative
results—so have total clarity around what it
is that you want.

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The second is courage—courage to do what
needs to be done, when it needs to be done,
because it needs to be done. As a leader, you
need to risk being unpopular and not flow
with every other person’s wants and needs.
If you constantly try to conform to society,
you will lose your individualism.

The third is integrity. This isn’t something

that you can turn on when it suits you, but
rather, you need to have integrity all the
time. I’m reminded of a time when a sales
director was in one of his regional
manager’s offices and the phone rang.

The sales director told the manager to lie to

the person on the phone and say he wasn’t
in. But the manager told the person on the
phone that the sales director was in the
office and handed him the phone. The sales
director was furious and reprimanded the

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manager after he finished the phone call.
The manager replied, “If I’m prepared to lie
for you, I will lie to you.” This is true
integrity.

The fourth quality is commitment—a

commitment to complete what you set out
to do. Have a passion for what you’re
doing, and stay committed until the end—
not just until it’s no longer convenient—and
complete the tasks that you start. You
attract what you are, not what you want.

The fifth is responsibility. Be responsible to

your clients, your customers, and your
staff—and be known as someone who’s as
good as his word. As I learned, true
leadership is doing what you said you
would do long after the mood in which you
said it has passed. Do you want to suffer the
pain of regret or the pain of discipline?

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The sixth quality is concentration. Bring out
the best in others through your examples.
True leadership is leading by example and
staying focused on the basics without being
constantly distracted. Do what needs to be
done, when it needs to be done, because it
needs to be done or you said it would be
done.

This life-changing information sets out

procedures that are the best tried and tested
ways of doing things to ensure the highest
possible level of success in your life. Quality
of service is an essential part of the
philosophy of The Winning Way, and
service is an integral part of all dealings that
The Winning Way has with all current and
potential clients.

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It’s necessary to follow the procedures to
ensure that all of the required information
relating to the program is captured
accurately and in a timely manner. This will
ensure that your business succeeds and is
able to fulfil your goals and aspirations.

This e-book has been designed to be used as

a working journal to enable you to change
your life forever.

Most importantly, this e-book is here to

help you get as much out of your life as
possible.

Finally, this e-book is just one of the range

of resources we have available to help you.
It’s not a substitute for the training sessions
or other personal assistance available to you
through The Winning Way. We strongly
encourage you to participate actively in all

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The Winning Way events and to maintain a
high level of communication with The
Winning Way.

This book presents information and ideas

that are designed to be of assistance in
contributing to successful participation in
The Winning Way’s Entrepreneurs’
Business Secrets program.

It’s our personal experience over the past

decade that if the lessons herein are applied
consistently, they will enable you to live a
life of health, wealth, and prosperity.

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Who Are We?

About The Winning Way

Our Expertise

The Winning Way approaches both

domestic and international business
activities with the skill, knowledge, and
confidence that can only be acquired from
29 years of personal, hands-on experience
and operations in eight countries.

With our corporate offices in Sydney,

Australia, The Winning Way coordinates,
directs, and oversees the planning,
marketing, and successful execution of
business education and leadership
development around the world. In addition,
The Winning Way designs, develops, and
distributes business education programs

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globally. From a multiday, 10,000-attendee
sales training seminar to global personal
development training programs, The
Winning Way has the vision, experience,
and resources to handle all aspects of
national and international business training.

Our Advantage

The Winning Way supports business

owners with exceptional personal coaching
and professional training, state-of-the-art
technology, and business development
functions around the world.

The Winning Way’s global team is

committed to the values and strategies that
lead to balanced success, both personally
and professionally.

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Our Approach

With our established global infrastructure,

business owners are never far from The
Winning Way’s support. CD and book
programs, seminars, and events in multiple
languages provide business owners with
incomparable resources.

The Winning Way’s focus is to develop,

encourage, and strengthen the effectiveness
of business owners everywhere. The
dynamics of a close family relationship are
generated in this simple yet extraordinary
infrastructure of support.

The Winning Way

The Winning Way was initially launched in

Australia in 1993, and 2001 marked the
beginning of our international expansion.

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We provide professional, experienced
keynote speakers globally to aid in the
development of other markets. A full array
of motivational and leadership events—as
well as training CDs, DVDs, and personal
development books—are made available by
the Australian team.

Ronnie Kagan’s Role

My role is to share my life’s knowledge and

personal experiences with you. This will
enable you to dramatically increase your
income while freeing up more time so that
you can live your life to the fullest.

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Communication

Communication is often the biggest asset

we have—or the biggest liability. In her
book Personality Plus, Florence Littauer talks
about the four personality types: popular
sanguine, powerful choleric, perfect
melancholy and peaceful phlegmatic. (If
you haven’t had the opportunity to read
this book, I recommend that you do.)

We need to be able to talk many languages.

What I mean by that is not that you need to
learn Italian or Spanish, but you must learn
to talk to people in a way that makes them
listen. For example, if you were trying to get
people to a meeting and you were talking to
a “melancholy” personality type, you
would say, “Come to the meeting and bring
lots of paper and pens, and you’ll get all the
information you need.” If you were

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speaking to a “sanguine,” you would say,
“Come to the meeting, and you’ll have fun
and meet a lot of great people.”

I believe that one of the biggest problems

we have in communication is that we try to
communicate with other people according
to our values and/or terminology. Further
on in this book, I’ll talk about finding your
core values and aligning the individual’s
values with the company’s values.

After all that I’ve experienced, I can state

without any hesitation that teamwork can
create fantastic results—and a lack of
teamwork can destroy even the greatest
opportunity.

There’s a distinction between personal

values and business values. Once you
understand peoples values you can

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communicate in a common language. This
leads to greater results with a fraction of the
effort normally required when you are both
pulling in different directions.

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Conflict Resolution

Conflict will usually be the major cause of

losing staff members or clients. Satisfied
clients will stay with you, even if a
competitor tries to offer them a slightly
better price. People like to do business with
people that they like.

If you’re experiencing conflict within your

business, sit down with the other party and
follow the recommended rules for conflict
resolution in a discussion. If you doubt
whether it’s worth your while, ask yourself,
“Do I want to be right, or do I want to be
rich?”

I have found a simple four-step process that

I follow every time I’m confronted with an
issue with regard to another person and I
wish to move through that issue. Just as if

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you wish to win in a game, all the parties
playing in the game need to understand the
rules or you cannot play the game
successfully. (In a game of soccer, we don’t
use hands, but in rugby we do.) So to win in
the game everyone needs to understand the
rules before they start the game.

These are the rules I’ve learned to play by if

I wish to have a win-win outcome in the
game of conflict resolution.

Rules for Conflict Resolution

1. I will accept that your needs are as

important as my needs—if you’ll do the
same for me.
2. If I say no, you may not make me feel
guilty. If you say no, I must accept that
and not manipulate you into feeling
guilty.

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 3. We must both accept that it’s okay to
make mistakes.
4. We’re allowed to express our opinions,
provided that we don’t violate the rights
of the other party—and the rights of the
other party are: a, b, and c.

There are only four points to remember to

resolve any issue:
1. Admit that there’s a problem. (Both
parties need to do this.)
2. Try to identify the problem.
3. Look for a solution.
4. Always refer to the solution, and never
mention the problem again. (This is
often the hardest part of the solution
process.)

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Goals

The difference between working with a goal

and working without a goal is results.

GOSPA

One of the most important skills you can

develop in growing your business is that of
strategic planning. An uncomplicated
method that’s often used is the GOSPA
model:

Goals
Objectives
Strategies
Plans
Actions

The GOSPA model is used by large and

small companies to maximise productivity.

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It can work in your business as well. If you
find yourself becoming frustrated or even
disillusioned when an important goal defies
all of your diligent planning and persistent
execution, go back to the beginning.

Use the GOSPA method to ensure that you

haven’t been flying in the face of the law of
complexity and Occam’s razor—and
thereby attempting to defy the principle of
simplification.

1. Goals

Clear, precise thinking—the ability to

clearly identify the essential, core
components of your goals—is the first
prerequisite when applying the
principle of simplification. It’s for this
reason that we concentrate so heavily on
gaining clarity with respect to both

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personal and business goals.

Fuzzy, unclear goals lead to

procrastination and inefficient plans.
Time spent in gaining clarity before
diving into the planning process is like
depositing money in the bank. It can
save hundreds and even thousands of
hours and dollars down the road.

A properly stated goal has five

characteristics, summarised in the
acronym “SMART”:
• Is your goal Specific? Have you
stated it in its simplest and most
precise terms?
• Is your goal Measurable? Is it stated
in clear, quantifiable terms, enabling
you to benchmark your progress?
• Is your goal Aligned with your core
values?

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 • Is your goal Realistic? Do you
believe you can—and will—achieve
it?
• Is your goal Time bound? Do you
have a deadline for its achievement?

2. Objectives

In working towards a goal, you must

establish clear objectives or milestones—
predetermined steps that will lead you
to the achievement of your goal. In
essence, objectives are like minigoals
and must meet the same SMART
standards.

3. Strategies

With goals and objectives clearly

defined in the simplest specific terms,
you must now determine the strategy

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you’ll adopt to reach the objectives and
thereby attain your goal. For example,
your goal may be to sell 5,000 units of a
product at a price of $100 per unit
within six months. Your objectives
might be as follows:

Month 1 100 units sold

Month 2 250 units sold
Month 3 500 units sold
Month 4 750 units sold
Month 5 1,250 units sold
Month 6 2,150 units sold
6-Month Total 5,000 units sold

The question now becomes “How will I

reach my objectives?” Will you use
direct mail? Email? Will you advertise?
If so, what advertising medium will you
use? And so on.

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 The best strategy for you should meet
these three criteria:
• Will it be easy to define, to
understand, and to execute?
• Will it be based on the skills and
resources most readily available to
you?
• Will it be practical, offering you the
best chance of success?

4. Planning

Once the goal has been clearly defined,

the objectives established, and the
strategy set, build a plan to implement
the strategy. Up until this point, the
process has been strategic. It now
becomes practical. For example, if your
strategy is to use direct mail to reach
your objectives as spelled out above, lay
out the practical steps you’ll take to

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 carry out this strategy—such as list
selection, copywriting, mailing method,
and so on.

Like every other stage of this GOSPA

analysis, be specific and precise. Include
deadlines and performance
accountability—e.g., who will be held
accountable for each tactic. Remember,
what gets planned gets done.

5. Action

Finally, take swift and decisive action.

Follow your plan. Monitor your
progress. Be persistent—and, at the
same time, be flexible, always on the
lookout for changes in the external
environment that requires changes in
your strategies and tactics.

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Whenever you find that you or your
business is getting bogged down, with little
progress towards your goals, perform a
GOSPA analysis.

Re-examine your goals, objectives,

strategies, plans, and actions. Most
importantly, remain forever vigilant. Be on
the lookout for unnecessary processes and
complexities that so often take hold—and
when they do, remove them. Your battle cry
must be “Keep it simple!”

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The Seven Essential Business
Secrets

The Greek philosopher Archimedes once

said, “Give me a lever long enough and a
place to stand and I can move the world.”

This principle applies to you as well. In

order to get the very most out of yourself,
you must leverage your strengths and
abilities. Leveraging is the key to achieving
vastly more than you could on your own.

Essentially, there are seven ways to leverage

yourself:
1. Other people’s energy
2. Other people’s knowledge
3. Other people’s money
4. Other people’s successes
5. Other people’s failures
6. Other people’s ideas
7. Other people’s contacts

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Other People’s Energy

The first form of leverage is other people’s

energy. Highly effective people are always
looking for ways to delegate and outsource
lower-value activities so that they have
more time to do the few things that give
them the highest payoff.

Other People’s Knowledge

The second form of leverage is other

people’s knowledge. One key piece of
knowledge applied to your situation can
make an extraordinary difference in your
results. It can save you an enormous
amount of money and many hours—even
weeks or months—of hard work.

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For this reason, successful people are like
radar screens, constantly sweeping the
horizons of their lives and continually
seeking—in books, magazines, CDs, articles,
and conferences—ideas and insights that
they can use to help them to achieve their
goals faster. You won’t live long enough to
make every mistake yourself, so learn from
other people’s mistakes.

The Internet now makes the job of

researching other people’s knowledge
easier and faster than ever before. Visit our
website at www.WinningWay.com.au to
gain more information as to how you can
learn from others and save time, energy and
money.

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Other People’s Money

The third form of leverage is other people’s

money. Your ability to borrow money, and
to otherwise tap into the financial resources
of other people, can enable you to
accomplish extraordinary things that would
not be possible if you had to pay for them
out of your own pocket.

You should be continually looking for

opportunities to borrow and invest money
and achieve returns well in excess of the
cost of that money.

There are numerous sources to explore,

including chartered banks, savings and loan
associations, venture capitalists, and both
public and private offerings of shares, to
name a few. The wise entrepreneur

44
develops a solid relationship with a bank
from the beginning.

The best time to borrow money is when you

don’t need it. This may sound crazy, but it’s
true. Borrow a small sum, place it in a safe
investment—such as a security of deposit or
short-term, fixed-deposit account—and, in a
few months, pay it back. Repeat this process
several times.

Don’t invest the money in high-risk

ventures, such as margin accounts or the
options market, under the misperception
that you’ll be able to make a profit.
Remember, you’re going through this
exercise in order to be able to create a good
credit rating.

In this way, you’ll establish a strong credit

rating and a positive track record with your

45
bank. This strategy of consciously building
a strong credit rating will pay big dividends
on the day when you do need a loan. And
rest assured, that day will come!

Other People’s Successes

The fourth form of leverage is other

people’s successes. You can dramatically
improve the quality of your results by
studying the successes enjoyed by other
people and other businesses. Successful
people have usually paid a high price in
money, effort, emotions, difficulties, and
disappointment to achieve a particular goal.

By studying their successes and learning

from their experiences, you can often save
yourself an enormous amount of time and
trouble.

46
Read biographies of successful people.
Study the careers of those who have
achieved great success in your field. Seek
them out and ask them for their counsel.
You’ll find that many successful people take
great pleasure in helping individuals who
are sincere about wanting to make
something of their lives. Their advice can
prove priceless.

As you become successful yourself,

remember the gifts received from those who
blazed the trail before you. Make an effort
to give back to those who follow. This will
bring you its own store of riches.

Other People’s Failures

The fifth form of leverage is other people’s

failures. Benjamin Franklin once said, “Man
can either buy his wisdom or borrow it. By

47
buying it, he pays full price in personal time
and treasure. But by borrowing it, he
capitalises on the lessons learned from the
failures of others.”

Many of the greatest successes of history

came about as the result of carefully
studying the failures of other people in the
same or similar fields and then learning
from them. What or who has failed in your
field? How can you learn from these
invaluable lessons?

You’ll discover that truly successful people

who genuinely wish to support you will
share not only their successes but their
failures as well. Pay close attention to their
stories. This is often where the true gold
lies.

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Other People’s Ideas

A sixth form of leverage is other people’s

ideas. One good idea is all you need to birth
a fortune. The more you read, learn, discuss,
and experiment, the more likely it is that
you’ll come across an idea that, combined
with your own abilities and resources, will
make you a great success in your field. Of
course, ideas in and of themselves are not
all it takes.

The world is full of people who will eagerly

share with you their “if only” tales. How
often have you heard this: “I had this great
idea, but before I could get around to doing
something with it, someone else came out
with it and made millions. If only I’d done
something with it!”? The person who acts
on an idea will reap the benefits.

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If it’s your own original idea, good for you.
But some research can open your eyes to a
never-ending stream of other people’s ideas
that, when wrapped up in a sound plan and
put into action, can form the basis of a
highly profitable venture.

Other People’s Contacts

The seventh form of leverage is other

people’s contacts or other people’s
credibility. Each person you know in turn
knows many other people, many of whom
can be helpful to you. Whom do you know
who could open doors for you by
introducing you to the right people? One
introduction to one key person can change
the entire direction of your life.

Becoming skilled in these seven forms of

leverage will have an enormously positive

50
impact as you relentlessly work to become
more productive. Study them. Learn them.
And, most importantly, apply them. Then
enjoy the remarkable results in your life and
your business.

51
Mastering the Art of Delegation

What, why, and how should we delegate?

Delegation is a key to leveraging yourself

and, therefore, the key to increasing your
income and freeing up your time. The
following summarises the fundamental
principles of effective delegation:

1. Do what you do best, and delegate or

discontinue the rest. Another way of
stating this is: delegate any tasks that
can be performed by a person earning
less than your desired hourly rate of
income.

If your goal is to earn $100,000 per year,

for example, delegate any tasks for
which you would not be willing to pay
$50 per hour, thereby freeing you up to

52
 focus your own time and energy on
tasks that are worth $50 per hour or
more. Any time that you spend on tasks
of lesser value represents an inefficient
investment of your time and energy.

Note: Calculate your annual income by

multiplying the number of hours that
you work each week by 50 weeks—e.g.,
40 hours per week x 50 weeks per year =
2,000 hours per year. Then divide your
annual income by the number of hours.
So $100,000 income divided by 2,000
hours = $50 per hour.

2. Delegate to a person with demonstrated

competence in the required field.

3. Define the task clearly. What is your

intended outcome?

53
4. Explain the task clearly. Then ask the
person to repeat the details of the task in
writing. If his or her description is not
an accurate reflection of what you want
accomplished, explain the differences in
detail and have the person resubmit his
or her understanding in writing. This
step of writing helps enormously in
achieving “buy-in.”

5. Discuss and get agreement on the

resources required to achieve the task.

6. Discuss and get agreement on the

benefits of completing, or consequences
of not completing, the task.

7. Define and get agreement on the

deadline for completing the task and on
benchmarks to measure the progress.

54
8. Have the person add these three
elements to the written description of
the delegated task and then sign the
written understanding. I have found
that, psychologically, this final step
transforms the understanding to a
commitment.

9. Inspect what you expect—i.e., carefully

monitor the progress by checking on
agreed benchmarks and timelines.

10. Keep your word regarding the

consequences of not following through.

11. Delegate the task, but never the

responsibility.

55
Task-Relevant Maturity

Generally, there are three levels of

competence, and your delegation style and
technique should vary according to which
level the individual possesses. We refer to
this principle as “task-relevant maturity.”

1. Low Task-Relevant Maturity

Individuals with low task-relevant

maturity have little experience in the
required field. They may be new
employees, or at least new to this job,
and must be managed accordingly. In
such a case, you’ll use a directive style
of delegation.

Carefully explain the task being

assigned, the intended outcome, and the
required resources, assuring that the

56
latter will be made available. Then
outline each step in the process, asking
them to take notes and ask questions.

After the individuals have prepared and

signed the written performance
agreement, you must then carefully
monitor the process. In other words,
you’ll instruct them to perform the first
step and then report back to you. Next,
inspect the work just accomplished to
ensure that it has been satisfactorily
completed.

Offer constructive feedback to help

them learn from any mistakes they may
have made. Then repeat this cycle for
each of the remaining steps until the
delegated task has been completed to
your satisfaction. Finally, debrief the
entire process with the individuals,

57
offering feedback and encouragement
and seeking feedback yourself as to how
they experienced the process, what was
learned from the experience, and how
they might improve it the next time.
Remember, the objective is first to get
the job done and also to develop
effective, competent, and confident
employees.

If you do need to address an issue, use

the “hamburger” approach. Give them
some positive feedback about something
they’re doing well, then address an area
where they need to improve, and then
end with something that you
acknowledge they’ve done well. (Never
criticise the person, but rather the action.)

58
 If there are several areas that need to be
improved, it’s best to address the main
issue first, get that rectified, then
address another issue the next time.

2. Medium Task-Relevant Maturity

Individuals with medium task-relevant

maturity have probably been in this
position for some time, either with you
or in a previous job. They’ve
demonstrated a certain level of
competency in performing tasks similar
to the one you’re currently delegating
and have earned your trust.

Nevertheless, their experience may be

somewhat limited and their judgment
and task-related knowledge still
developing. In this case, you’ll use a
management-by-objectives style of

59
delegation. Clearly explain the goals
and objectives—the “what”—of the
assigned task, and then ask them to
figure out how to accomplish it and
come back to you with a plan.

The onus is on them to determine the

steps and the required resources.
Monitor progress by periodic reports
they’ve agreed to provide at critical
points along the completion chain.
Otherwise, encourage them to come to
you only when they get stuck or
confused.

Avoid the trap of reverse delegation or

upward delegation, where the person to
whom you’ve delegated the task comes
to you with a problem or challenge and
you respond, “Leave it with me. I’ll
handle it.”

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 This can be a huge temptation,
especially if you’re rushed and know it
will take less time to do it yourself than
to work with the individuals to help
them solve the problem themselves. At
such a time, remember your goal: to get
the job done and to develop effective,
competent, and confident employees.

Your job is that of coach and mentor.

Keep in mind that time spent helping
the employee to think through problems
and arrive at workable solutions will
pay enormous dividends down the
road.

3. High Task-Relevant Maturity

Individuals with high task-relevant

maturity have a great deal of experience

61
in the specific field. They might be
described as an expert, possibly
bringing an expertise in the area
superior even to your own. In this case,
you’ll use a leadership style of
delegation.

Focus on gaining a clear agreement of

the objective, make it clear that they’ll
be held accountable for the results, and
then grant them the authority to make
the decisions required to get the job
done. Then step aside and give them the
room to perform.

Clearly, this level of delegation depends

not only on the task-relevant maturity of
the individual but also on a high level of
trust between each of you—trust based
on experience in working together on
similar projects in the past.

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As you continue to grow in your career,
continue to look for ways to leverage
yourself through delegation. Apply the
concept of task relevancy, and watch your
productivity increase while you also
contribute to the growth of those around
you. The results will be truly remarkable.

63
The Four Keys to Becoming Rich

If you are one of those people who believe hard

work and honesty alone brings riches, perish the
thought, because it is not true. Riches, when
they come in huge quantities, are never the
result of hard work. Riches come, if they come at
all, in response to definite demands based upon
the operation of definite principles, not by
chance or luck.
—Napoleon Hill

Key #1: Being Rich Is a Choice—So Is

Being Poor

The choice of making money, or not making

money, is controlled by our paradigms or
beliefs about money.

64
Beliefs I currently Beliefs I must now
have about being adopt about money
rich that may not and abundance
serve me

I have tried all my life, I have paid the price,

with many wonderful traveled the distance,
opportunities, and it and become patient
still eludes me. enough to attract it. I
use money to move
powerfully and add
value to others.
I never win. It’s I deserve to win
always someone else. because I’m a
wonderful person.

Create a need for it; decide what you want,

and the money will appear. This is the law
of attraction. Either you do it, or not—
there’s no trying.

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 • What you say and what you expect are
sometimes different.
• Fear is a thought of lack of abundance.
• Money is an energy source. It will flow
to you.

Key #2: Decide What You Want

The more clarity you have, the greater the

likelihood and the sooner you’ll attract into
your life what you truly desire.

Decide what you want in detail By when?

(the greater the detail, the
sooner it will appear)

A four-bedroom house on the beach 15 May

with a tennis court, four-car garage, 2009
gymnasium, swimming pool, and
mooring for my 42-foot yacht

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Key #3: G.O.Y.A. = Get Off Your Ass

Take action. If it’s going to be, it’s up to me.

Most people overestimate what they believe
they can achieve in a year and
underestimate what can be achieved in a
decade. So get to work, stay consistent with
expectations, and it will eventuate.

Most people are waiting for everything to

be perfect before they do anything. You’ll
never have the perfect circumstances to get
going, so if you’re going to start, when
would be the best time to start? Now.

Key #4: How Badly Do You Really Want

It? Make It a Must.

The reason that most people don’t achieve

success is that they would like success, but
it’s not a must. Are you committed to the

67
actions or attached to the outcomes? One of
the great leaders of the world, Napoleon
Bonaparte, always said, “I see only the
objective, the obstacles must give way.”

Why is being rich, having all you desire,

living a life of abundance, and fulfilment a
must for you?
_______________________________________
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_______________________________________
_______________________________________
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_______________________________________

68
We inherit most of our beliefs from our
parents and the people with whom we
associate. Create a new belief; don’t try
destroying your old thoughts.

I always ask people who are complaining,

“Do you want my sympathy or my
respect?”

If there was a man on a boat who was sea

sick. Would you empathise with him or
sympathise with him? If you empathise
with him, you take him below and give him
some seasickness tablets. If you sympathise
with him, you stand next to him and throw
up as well.

Change your thoughts the next time

someone complains about being financially
poor. You may want to adopt a little saying
that I repeat in my head: “I am so happy

69
and grateful; money comes to me in
abundance in increasing ways through
multiple sources of income.”

70
Creating a Golden Chain of
Referrals

The higher you rise on your customers’

satisfaction scale, the more success you’ll
achieve. The aim of every business is to
reach the level where it continually amazes
its customers.

Why? Simply this: your job as an

entrepreneur is to create and keep
customers. The highest level of customer
satisfaction will enable you to do just that.

Referrals are the best source of leads that

you can possibly generate.

You may consider a referral program

whereby new clients who are referred
generate some form of acknowledgement
back to the original referrer. You may

71
contemplate offering free participation in
further programs or discounted products as
an incentive. The best form of reward is
giving products or services that you supply
to the client who refers new customers. The
cost is low to you—however, the perceived
value is high.

It’s recommended that you obtain letters of

satisfaction from previous satisfied clients.
Have these letters drafted, and put them
onto the letterheads of those clients. These
should be placed in a presentation folder
and used for further reference during
presentations.

This not only generates new business, but it

also locks in your satisfied customers.
They’re more inclined to continue giving
you their business once they’ve referred

72
friends or associates, as they feel obligated
to retain your services.

Creating Customers

Today’s business climate is ever more

competitive, and customer acquisition costs
are high—i.e., the price you pay to generate
new customers is increasing at a rapid rate.
Sales and marketing budgets can consume
an inordinate amount of cash.

Prospecting and cold-calling can consume

an enormous amount of time. For this
reason, a new customer who is referred to
you by an existing satisfied customer is a
jewel to be sought and treasured.

A major hurdle in the selling process is

earning the trust of a prospective customer.
When you’ve been referred by a satisfied

73
customer whom the prospective customer
trusts, you inherit part of that trust. As a
result, you stand a much greater chance of
getting in the door. You’ll also be much
more likely to move through the sales
process quickly, as the rapport-building
stage will be a lot easier and the objections
will be far fewer.

At the end of your presentation, it will also

be easier to close the sale. In fact, it’s often
said that a good referral is 15 times easier to
enrol than a cold call.

To gain a huge competitive advantage and

to assure a jump start in growing your
business, commit yourself to devising a
sound strategy for developing a “golden
chain” of referrals. Your goal should be to
reach the point where you never have to
cold-call again, where you sell by referral

74
only. Your most likely source of referrals is
your existing client base: those customers
who represent the highest levels of
customer satisfaction.

Why would your customers want to use

your products or services? What motivates
people to drive past a certain store in order
to support another business that’s further
away? What are the key elements that you
need to meet or surpass in order to retain
satisfied customers? We’ll look at these later
in the book.

The Power of Word of Mouth

One of the most powerful determinants of

the future success of your business is the
little understood phenomenon of word of
mouth. In his book World’s Best Known

75
Marketing Secret, Ivan R. Misner refers to
this as the “W-O-M Factor.”

A study conducted by the White House

Office of Consumer Affairs discovered that
90% of dissatisfied customers will not do
business with that company again. The
same study also concluded that, on average,
each dissatisfied customer will share his or
her dissatisfaction with at least nine other
people.

A similar study conducted by an

independent market research firm found
that each of these people is likely to tell five
other people. What this means is that just
one disgruntled customer ends up
poisoning the minds of 45 other people.

What company can afford such adverse

publicity? Yet, without a well thought-out

76
customer service program—and a relentless
commitment to its application—there’s a
good chance that this is exactly what will
occur.

77
Creating a “Golden Chain” of Referrals

While dissatisfied customers will share their

bad experiences, it’s often argued that the
inverse is also true: satisfied customers will
share their “delight” or “amazement” with
nine of their friends, relatives, and
associates—who will, in turn, pass on the
good news to five others.

Unfortunately, studies show otherwise, the

number of customers who will tell a
positive story of their experience with you,
your company, or your product is one-tenth
of the number who will share a negative
story.

In other words, while excellent customer

service is essential in reducing or even
eliminating negative word of mouth, you
cannot rely on positive word of mouth to

78
produce a stream of referrals. Building a
satisfied and loyal customer base is
certainly the first step. But more is required.
Next, you must design a workable referral
plan.

I will lay out some important steps you

might want to consider in building your
“golden chain” of referrals. Let’s discuss the
importance of building this.

Referrals don’t just happen. Have you ever

answered your phone and heard the party
on the other end of the line say, “Hi, this is
Sue calling. A friend of mine is a client of
yours and she recommended I call you
about [your product]. Would you be willing
to meet with me?” Although this would be
wonderful, it rarely happens. Waiting for
the phone to ring is a lousy marketing
strategy!

79
If you’re to build a pipeline of referrals, you
must create it yourself. This means that you
must ask for them. That’s right—ask!

Consider the following steps in building

your own bank of prospects:
1. Ask for referrals in advance of selling.
2. Ask for referrals after the meeting.
3. Ask for referrals from satisfied
customers.
4. Send a thank-you note to the source.
5. Report back to the source.
6. Send a small gift of appreciation to the
source.
7. Be referable.

1. Ask for referrals in advance of selling.

Depending on your product or service,

you may want to consider setting this

80
up before you even start showing it to
your potential client. A way of doing
this is as follows. As I sit down with my
potential client, I say, “This is a three-
step process.

Firstly, I’m going to show you what I’m

going to show you. Secondly, I’m going
to ask you to introduce me to people
you know—whom I don’t yet know—who
might be interested in how we can help
them. And thirdly, if you’re interested
in what I’m going to share with you, we
can discuss it further. Does that sound
fair enough?”

By doing this, I’m not relying on my

new potential client needing or wanting
to purchase my product or service, but
I’ll be able to at least walk away with
four or five referrals. These are no

81
longer cold calls, because you have a
referral—and you have a greater
likelihood of being able to enrol them in
your products and services because you
have some credibility when you walk
through the door, as you’re coming in
on a referral.

Early in the closing process, before

asking for the sale, you might say to a
new prospect, “Although I believe
you’ll find that our product is exactly
what you need, I know it’s not for
everyone. If you find my offering
attractive, even if you don’t personally
have a need for it at this time, would
you be willing to introduce me to
someone you know who does?”

Provided you’ve built trust with your

prospects, there’s a strong likelihood

82
 they’ll agree. Should this sale in fact not
take place, again ask for names and
contact information. If they provide one,
don’t hesitate to say, “Thank you so
much. I assure you I’ll treat your friend
with the same care and respect I’ve
shown you. Whom else do you know
who might be interested?” Always
attempt to leave with three or four
referrals. In this way, you can ensure
that a lost sale is not a lost opportunity.

2. Ask for referrals after the meeting.

The closing of a sale is often

accompanied by an emotional high for
your new customer. This is a wonderful
time to ask for referrals. As you’re
preparing to close the meeting, you
might say, “Mr. Customer, thank you
for your business. I know you’ll be

83
pleased with your new product or
service as it will [share the benefits he’ll
gain from the product or service he just
invested in]. Let me ask you, who else
might need [again, share the benefits of
your product or service]?” When your
customer offers a name, say, “Great,
thank you, and who else can you think
of?” Keep quiet, and wait for some more
names—don’t talk.

Once you have several names, then you

can go back and ask for their phone
numbers?” If the client gives you more
than one number, ask, “Which number
do you think I should call first?” With
each step, your new customer becomes
more and more involved in the process
and, subconsciously, more and more
committed to helping you.

84
You could also ask about the referrals,
“Why do you feel they would be
interested in the benefits of [product or
service]?” and listen. You might now
follow up with another question: “It
would be really helpful if you could call
and introduce me so he won’t be put off
by my call. Would you be willing to do
this for me?”

Don’t be surprised if he reaches for the

telephone right then and makes the
introduction on the spot. Again, your
goal should be to leave with at least
three to five referrals. (Ensure that the
caller doesn’t try to sell the referral your
product or service over the phone, but
rather just sells the appointment for you
to meet.)

85
3. Ask for referrals from satisfied
customers.

If you’ve done a good job of servicing

your customer after the sale, you can be
confident that you now have a satisfied
customer—one who will buy from you
again and who represents a potential
source of excellent referrals.

Contact your satisfied customer and

begin the conversation by enquiring if
he’s happy with his purchase and if
there’s anything more you can do for
him.

If he makes a request, then treat this as a

customer service call. If not, say to him,
“I’m so pleased you’re enjoying your
new [product or service]. Can you put
me in touch with anyone else who

86
would appreciate the same experience
as you’re enjoying using our [product or
service]?”

The wonderful thing about highly

satisfied customers is that they often
want their relatives, friends, and
associates to share their experience.
Think of the last time you thoroughly
enjoyed a movie.

Didn’t you want to immediately tell the

closest people in your life to be sure to
see it? Or recall an occasion when you
were delighted or even amazed by the
delicious food and quality of service at a
new restaurant. Did you recommend it
to others?

Beyond a doubt, there’s no better source

of referrals than a highly satisfied

87
 customer. But, unlike a situation with a
great movie or a fabulous new
restaurant, don’t expect him to pick up
the phone and start calling. It’s up to
you to initiate the referral-building
process.

Even if someone were to recommend

you to another potential customer, the
odds of this person getting in touch with
you would be remote at best. The
initiative must come from you. You
must ask for the referrals, and you must
follow up with those referrals.

4. Send a thank-you note to the source.

Within one day of receiving the referral,

drop a quick note to your customer to
thank him for his recommendation, and
again reassure him that you’ll treat his

88
 friend with respect. This is an important
part of cementing your relationship, and
it will pay dividends in the future in the
form of repeat business and further
referrals.

5. Report back to the source.

After you’ve followed up with the

referral, be sure to call your referring
customer again to thank him for the
introduction and report your results.
Remember, the referral is someone who
is meaningful to your customer, and
he’ll naturally be interested in what
transpires.

This step is a demonstration of good

manners, but it’s also more. Firstly, if
you succeeded in selling to his friend,
he’ll be open to your asking if he knows

89
 anyone else whom you might contact.
Secondly, if you were unable to close the
sale, your customer might choose to
contact his friend to find out why the
friend didn’t chose to go ahead and to
reiterate his own pleasure in using your
product or service. Either way, you
stand to gain.

6. Send a small gift of appreciation to the

source.

A further way to express your gratitude,

and to reinforce your relationships with
your referring customers, is to send
them a gift after you’ve closed a sale
with a referral they’ve provided. Your
gift should be appropriate to the size of
the sale. A word of caution: regardless
of the size and dollar value of your gift,
ensure that it’s of the finest quality, for it

90
will be a direct reflection on you and
your taste.

Several years ago, a company I know

learned an important lesson. Their
custom was—and still is—to send fruit
baskets as thank-you gifts. On one
occasion, the gift was returned within a
matter of days.

An accompanying handwritten note

explained that the food was of such
inferior quality that the recipient
wouldn’t share it with her fellow
employees. She graciously thanked the
company for the kind thoughts and
explained that she was sure they would
want to know what they were getting
for their money.

When the fruit basket was then

91
examined, they were shocked. The
basket was beautifully decorated, but
the contents consisted of a variety of
cheap crackers, some nuts, and a few
stale apples. The gift to the referring
customer—and its subsequent return—
turned out to be a gift to them. They
then searched for an alternate supplier
and found a company that stringently
monitored the quality of its offerings.

While the new supplier’s packaging was

attractive, their emphasis was on a
variety of beautiful fresh fruit,
delectable nuts, and top-quality biscuits.
Since making the change, this company
has received countless calls and cards
from very satisfied customers to thank
them for their generosity!

92
7. Be referable.

I’ve laid out a number of tried-and-

proven strategies for building a pipeline
of referrals. The foundation upon which
they must be laid—the glue that holds
them all together—is you.

In the final analysis, it’s your character,

your commitment to excellence, and
your genuine concern for your
customers that will determine the
number and quality of referrals that
your customers pass on to you.

Every day, look in the mirror and ask,

“Am I the kind of person I would
recommend to my family, to my closest
friends, to my most esteemed
associates?” If the answer is yes, you’re
on track. If not, rethink your resolve to

93
 become that kind of person. You’ll be
happier for it. You’ll also enjoy
unparalleled success in developing a
strong referral network.

Leave no stone unturned in your efforts to

develop a golden chain of referrals. Use
every strategy possible to transform your
customers into advocates for you, your
business, and your services and products.
It’s the wisest and most cost-effective
marketing strategy you could possibly
design.

94
Conclusion

Well done. You’ve completed the e-book. I

believe that the main reason most people
don’t succeed in business, or in life, is that
they don’t complete whatever it is that they
start. They get distracted or impatient. But
you have followed through on your
commitment to improve yourself, and I
would like to take this opportunity to
congratulate you for staying on the path to
The Winning Way.

As I mentioned before, knowledge is not

power. Rather, it’s the application of that
knowledge, on a consistent basis, that will
deliver powerful results.
You now have the knowledge of how to win
in business, make money, and enjoy a
balanced life.

95
Now go back, look at each section, and start
taking daily steps of implementation and
understanding. By applying these basic
fundamental steps, you’ll ensure your
growth and success.

If you have information that you’ve found

to be beneficial, please email me or visit our
website www.WinningWay.com.au and I’ll
be proud to include you in our global
network of business leaders who are
committed to both personal and business
growth. This will enable you to interact
with business leaders who are committed to
winning in business, creating more profit,
and enjoying a balanced life.

If you would like to receive our monthly

newsletter or become a global leader,
learning and growing through a team of
business people committed to growth and

96
profit, log onto
www.TheBusinessOfLife.com.au and we’ll
be proud to help you add value to your life

What new choices do you need to make in

how you’re using your time? No one can
make new choices for you. Your choices are
yours alone—they are the minutes of your
days that either prohibit or provide life.

Take an honest inventory of your life. Is it a

reflection of your uniqueness or are you on
autopilot, just going through the motions,
filling up time? Now is the time to act. Now
is the time to live. Your future is not some
far-off mystical dream.

The look of your future is merely the

culmination of how you most frequently
spend your time. After all that we’ve said
and done, I hope that you’ll spend it wisely,

97
today and every day thereafter. That alone
leads to freedom.

We would love to hear any feedback you

have on any aspect of the information
contained herein—or on any other areas
that you feel could usefully be included.
Please contact us at
info@WinningWay.com.au .

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