When I was in Istanbul, Turkey back in September, I heard Harvard lecturer and Good Think CEO Shawn Achor give his presentation focusing on research around happiness. This was fascinating, filled with humor, and centered on the power of happiness can spread and lead to more productive workers. Sharing this now seems very appropriate, given that half the voters out there are not very happy about the outcome of the election. I myself feel like capitalism has been pushed aside in favor of a bigger, more controlling government. I believe economic growth and jobs come from entrepreneurs, and big government only gets in their way, so this doesn’t motivate me to do a happy dance. So how can we all increase our happiness during challenging times?

Shawn has written a book called “The Happiness Advantage,” and it explains that our problems with happiness come from our thinking that we will be happy when we get to a certain outcome or level of success. Therefore, any victories or accomplishments get pushed down the road and delay happiness. The problem is that when we get there, the level of success is reset and increased. This leaves us with a feeling of not ever getting to that happy place, so what are we to do?

You can also click here to watch the video.

Our brains work better when we are positive and function less efficiently when we are neutral or negative. We also have increased intelligence and creativity when we are positive. As empathic beings, when we share a smile it is contagious the same way a frown or depression can be.

How do we become happier, and what can we do to increase happiness among those around us? Shawn shared 6 key areas on simple ways to change your happiness:

• Gratitude – write five things that you are grateful for each morning. This refocuses your brain and opens up your awareness to look for the happy things in life.
• Journaling – spend three minutes each day for thirty days writing about a positive experience. This has been shown to decrease doctor visits by 50%. You become more social, and your immune system improves.
• Simplifying vs Multitasking – do one thing at a time. This is what we are built to do. Multitasking increases stress, which eats away at every organ in our body.
• Utilizing Strengths – discover and focus on your strengths. This gives you high levels of energy and productivity with low levels of success.
• Exercising – work out. This is as powerful an antidepressant as the pills, and it releases dopamine in the brain, which cause positive and uplifting feelings.
• Meditation – relax and just watch your breath go in and out. It changes the way your brain structures itself and changes its electrical impulses. This allows a more balanced and positive feeling.

Shawn also discussed the activation energy that you use to get an activity to really kick in and become a habit. He wanted to play the guitar more but found that having to go into the closet and get it out deterred him. He reduced his activation energy (initial investment of energy necessary to accomplish a task) by placing the guitar in the middle of room. He then played for 28 out of 30 days.

What activity do you want to do to be happier? How are you going to reduce your activation energy and get it done?

Over the past few weeks, we have been discussing the change in the marketplace oversupply. If we are going to grow our companies, we need to figure out how to zero in on the right demand sectors. To do this, you first must figure out your demand profit pools. So, what are those? Demand profit pools are the areas of untapped demand that we as business owners may not be aware of because we haven’t dug deep enough.

In “How Companies Win,” Kash and Calhoun discuss this and cite an example of the dog food industry. This industry provided bags of food under standard segments based on large, medium, and small dogs. The food was then segmented under dry/bagged or wet/canned. There was very little vision and, as Kash says, “absolutely no proprietary insights.”

They finally looked at the demand landscape. This takes a look at everything ahead of you, such as valleys, rivers, towns, hills, and whatever else may be out there. The analysis is done with a variety of surveys, focus groups, market research, and other techniques that break down the demand pools by tastes, customer characteristics, lifestyles, needs, and desires. All these combined create the demand landscape.

After this type of analysis on the dog food industry, demand pools were broken up, not by breed or size, but in the relationship that owners had with their dogs. They were broken down by marketing the dog as a child, the dog as part of the family, the dog as an active partner, the dog as a pet, and the dog as a farm implement. As you might imagine, the dog as a child was the high profit center, and the dog as a farm implement was the low profit center. This awareness caused the pet food company to align their products with the right demand and create greater distinctions with each brand, so they avoided competing with themselves.

What if you could find the answers to the questions Kash and Calhoun propose in their book?

• Find the high-profit consumers who can raise your margins and revenues
• Understand current, latent, and emerging demand
• Determine which channels are growing and which channels are slowing
• Assess where your competitors are strong and where they are weakest
• Understand the media habits of your most important consumers
• Identify the best potential opportunities for innovation
• Build a financial model for resource allocation to drive faster growth
• Develop insights about the demand of your most profitable customers

Having these answers is the way to deal the increasing oversupply economy that we now have and to create the demand that is needed to grow your business. What are you doing to dig deeper?

Last week, I said we would discuss how to zero in and better handle the demand economy, and we will also look at how to make your offering target the demand that you want to create. We will actually do that next week, so we can first understand how we have transitioned into an economy of oversupply. Let’s review why economic demand has changed. In the book “How Companies Win,” Kash and Calhoun describe four phases of transitions moving from a supply based economy to a demand based one.

The first phase involved market equilibrium, which lasted from 1947 to 1990. After World War II, places that had avoided destruction kicked into a level of prosperity that last for decades. Other areas took longer to adjust but entered the industrial and information economy over time, continuing to create demand as we became more global. With the advent of many different supply chain management approaches and thinkers like Edwards Deming, we continued to lower cost and improve the supply as more demand was created. These good times stayed in balance for a long time . . . until they didn’t.

The period of oversupply started in 1991 and continued through 2007. An aging population in the developed world, the end of the Cold War, and globalization created this phase. This generated a significantly large number of companies adding their offerings to those of the multitude of businesses already out there. The internet popped up during this period, which also created a medium to communicate and share knowledge. This brought many more companies to the table. Productivity increased. Then, the first bubble hit during the early 2000s and was followed by more, which led to the true slowdown in demand.

The demand contraction of the Great Recession hit during 2008. This created a global slowdown not seen since the Depression. The housing market was decimated, and unemployment shot up, continuing a reduction in demand that has lasted to present day. This was followed by stimulus, increasing the debt. To solve this problem, the government will need to spend less and possibly raise taxes, which will likely lead to even less demand.

We now have a Demand Driven Economy. A hypercompetitive business environment characterizes this fourth area, and it will continue into the future. This flat demand will put a crunch on profits and drive a lot of businesses to disappear.

The companies that have a better understanding of the demand situation will be able to position themselves for a demand offering that will drive more business. More on that next week.

Looking at what has been happening in the world with the slow economy, you would think it all has to do with a bad recession or political activity that is less than favorable to the business world. Look a little deeper, and you will see things are changing. We should be aware of all that is going on for the sake of positioning our businesses for the most potential possible.

I believe, as a leader of a company and the one responsible for putting us in the path of future waves of opportunity, my purpose is to read and learn as much as possible. To achieve this, I participate in the EO University Conferences, attend the Verne Harnish Fortune Conference, and read a large number of books every year. This exposes me to people, speakers, and ideas that help me contemplate what the future may look like.

Back in the early 2000s, I came across a book called “The New Law of Demand and Supply” by Rick Kash that was sent to me by the Williams Inference Center, and I have been reading a book more recently called “How Companies Win” also by Kash and David Calhoun. The first book put some interesting thoughts in my head, but I didn’t see really the power of this thinking until the great recession hit us. Why? Because it took the significant decline in business to magnify how the Demand and Supply forces have changed.

In the past, we had huge demand from those who wanted everything businesses could throw at them. For decades, we could grow revenue by adding more offerings and streamlining supply. We globalized the supply chain, reducing costs by making products in China or India or even just down the street if that was most efficient. We were able to buy so many things as our living standards increased and the costs decreasing. We accumulated so much!

Now, things have changed. The demand is simply not there. We have excessive supply from where we increased it so much in the previous decades to meet the high demand, but this terrible economy has taken away our buying power. We now see an economy that has vast oversupply but not enough customers to support the businesses that are out there trying to provide that product or service. This is the new world in which we are living, so decision makers need to know how to deal with this in order to generate growth in their business.

For those that zone out when you hear “supply and demand” due to the brain trauma you received in Econ 101, let me say it another way. In the past, we desired lots of things (lots of demand) and the business world struggled to make all we wanted and to provide at affordable prices (not enough supply). Now, we have this huge amount of goods (over supply) that companies are trying to sell and not enough people with the desire or resources to buy them (lacking in demand).

There is so much supply for what you are offering, so it is tough to grow business. Can you see this in your business environment?

Supply has vastly outpaced the demand in the economy right now, and the global economy has become unbalanced. We need to grasp this new reality that in order to get customers to want our offerings, we need to zero in on exactly what they are demanding. We will focus on this in next week’s blog.

The world is changing quickly. Many times we find ourselves looking up from whatever we were doing and wondering, “Where did that come from? Why are people doing it that way? How does everyone seem to know about this except me?” In the world of the internet, we all stay connected at all times and all locations, so when changes occur, they are downloaded and spread in real time. Some of us simply choose to see it on our own time frame.

Look around when you walk into a restaurant, when you’re waiting in line, when you’re sitting around the airport or subway station. You’ll notice that everyone is staring at a phone. This scene is so profound that we might be mistaken for a scene from “The Walking Dead” if our faces weren’t fully intact.

The point is that change is here, and more change is coming. Are you on board, or has the train left the station? At Efficience, we are doing educational sessions to provide awareness of these changes and how you can benefit from change.

IDC and Appcelerator conducted a survey of app developers. INC discussed this in an article and noted, “Developers are highlighting a cautionary note that all businesses should pay attention to: Mobile has the power to reshape entire industries and these changes will be swift.” They continue, “It is not enough to port elements of your existing business model over to mobile. Staying competitive in the era of mobility requires fundamentally re-envisioning traditional business models through a mobile-first lens.”

Using a mobile app opens up stratospheric opportunities for business when you consider the strategy behind this connection. At Efficience, we are doing this by building strategies for companies that will help them use features such as push notifications to make customers aware of discounted services or prices in real time to drive more people to you. This is particularly helpful to do when you are having slow traffic and want to increase revenue for the fix cost you are already incurring.

What if you are a restaurant and you want to get new customers? If you get your current customers to download your app, you can send out a notification saying, “Bring in a couple of your best friends that haven’t eaten here before and get a free meal!” The possibilities are endless and will evolve as location based technology grows. By connecting and sharing knowledge, push notification specials, announcements of special events, and updated photos, you make your good customers even better and drive them and their friends to do more business with you.

Does your current advertising and marketing connect you to customers and drive the opportunities for more revenue as well as mobile apps?

I am writing this week’s blog on Friday, October 5, which has great significance for me. My partner of 20 years back in my investment days was born on this day, along with my lifelong best friend Ronald Poles. It is also one year from the day that Steve Jobs passed away. Verne Harnish reminded me of this in his blog, and he shared this video put out by Apple. It is a nice tribute and a great reminder of what he and Apple have done for our everyday lives.

Steve Jobs is an icon of our time. In this country, we all love the story of the underdog or a great comeback story! That is the story of Steve Jobs. The board of the company that he started himself removed him, but then they asked him to return when things went bad, and he turned Apple into the most valuable company on the planet.

I also find it interesting that a man who demanded so much from his people and was considered so difficult to work with managed to accomplish so much. Walter Isaacson discusses the details in his book about Steve Jobs. Jobs pushed his people further than they thought they could go. I remember this saying I came across many years ago: When you look back over your life, the people that you will remember the most outside of your immediate loved ones are the ones that got the most out of you.

If I think back, that is true for me. The teachers and the coaches that pushed me to do more than I thought I could do are the ones that stand out in my mind. Jobs was that type of person. Even though I am sure many people got frustrated with him, those same people remember going to the next level because they were around someone that pushed to get the most out of them.

Steve Jobs also focused on one key priority and spent three hours a day on that issue. He considered this to be vital to moving forward and creating successful products. He also had lunch most days with Jonathan Ive, his chief designer. During this time, they discussed the areas Steve thought mattered most and decided how to move forward with those ideas to create the great experiences we have today with Apple products. Adam Lashinsky outlined this in his book “Inside Apple.”

That type of time takes a lot of energy to get the “Flywheel” spinning, as discussed by Jim Collins. And what a Flywheel and legacy Steve has created! It still pushes out “gee-whiz” products that will have people standing in line for hours just so they can be one of the first to buy them.

I know I could definitely be more focused in my efforts. How much focus and effort are you putting on the most important areas of your company and your life?

I have returned home from my EO adventure in Istanbul, Turkey. What an amazing time with 800 entrepreneurs from 91 EO chapters in 39 countries around the world! We heard many interesting speakers, including the Turkish Prime Minister Tayyip Erdogan, who sent a recorded message for us. He told us about their country’s openness to trade and commerce. They are the fastest growing G-20 nation at 8.5%.

As I write this blog, I am waiting in the Frankfort airport and traveling to Istanbul, Turkey to join the EO University and about 700 of my fellow entrepreneurs, including some of my very close friends. I have been looking forward to this conference for a while and have been intrigued with Istanbul for as long as I can remember. I suspect it has something to do with a movie I had seen when I was younger. I look forward to sharing some of my experiences from exploring the city and attending the conference in upcoming blogs.

On the plane, I was reading “Crucial Conversations: Tools For Talking When Stakes Are High.” What makes this book so interesting is its implications for all areas of your life, even though it is a business book. It has really challenged me to think about why we tend to mess up conversations in important situations, like requesting a raise, discussing a big business deal, determining if your relationship will last, or trying to rekindle an estranged family relationship.

Why do we mess these up? In a crucial conversation, our natural fight or flight response kicks in, so blood leaves our brain and travels to the extremities in preparation for fight or flight. The blood leaving the brain decreases our cognitive ability to consider how to say the important things we want to say in a respectful and appropriate manner given the situation. In my experience, our words typically come out in the wrong tone or in a way that does not get the desired positive outcome.

The authors have researched thousands of crucial conversations, and they say having effective discussions is a learning process. When you understand what happens to your brain, you can combine this knowledge with some of their key findings and learn and grow in this area.

Their findings conclude people skilled at having productive conversations:

• Start from the heart. This means they start with the right motives. Winning is usually not the right motive. We are brought up to want to move forward and get ahead. When this is brought into the crucial conversation, it leads to bad outcomes.

• Focus on what they really want. When you are starting to move toward a position of silence, defensiveness, or punishing the other, ask yourself, “What do I want for myself, for others, and for the relationship?” By clarifying what you do and do not want, you free your brain to start searching for better and healthier options.

I know I need to work on this, so I’ll focus on it until I grow my awareness and really improve. How about you? Are your crucial conversations productive and healthy?

One of my by business idols is Sir Richard Branson, whom I have had the pleasure of meeting. My close friend Joe Hollingsworth has spent a week with him on his private island in the Virgin Islands and heard many interesting stories. What makes him really stand out to me is that he has started over 400 businesses and has had great success with many of them. He also has dyslexia, which resonates with me because so do I. Some may see this as a handicap, but I see it as one of the reasons he has achieved much success. If you would like to understand more about why, read my blog on my experience with dyslexia.

In a recent article, “Richard Branson’s Six Secrets to Productivity,” I found some important truths that I would like to share:

1) Exercise. It is key to having the energy to be productive. It is difficult to fight the good fight in your business life if you are not keeping yourself fit and energized.

2) Keep lists. He says, “I have always lived my life making lists: lists of people to call, lists of ideas, lists of companies to set up, lists of people that can make things happen.” I love that last one! If you are around me at all, you will hear me say to my team, “Let’s make things happen!”

3) Love what you do. This cannot be emphasized enough if you are going to be productive. You need the passion that only loving what you do will bring into your activities. Branson says, “I don’t think of work as work and play as play. It is all living.”

4) Don’t get the lawyers or accountants involved too early. It slows down the action. Make things happen and don’t waste unnecessary time in this area until the vision and strategy are thought out, and things are moving forward. Figure out the details as you go.

5) Step back and delegate. Hands-off delegation is important to Branson because he wouldn’t be able to handle all 400 companies and the details that go with them. He says, “I have to be good at helping people run the individual businesses and I have to be willing to step back.”

6) Set up big audacious goals. This way, even if you fall a little short, you have accomplished significantly more than you would have otherwise. Also, pay attention and focus on the few things that make a real difference.

These all sound so simple, but they are really not that easy to implement. Think about just half of those points: Delegate, focus on a few things, and exercise. It’s not easy to let go of things when you, as a gung-ho entrepreneur, really want to take control and push to make them happen on your own. Most of us business types have an attention deficit brain and find it hard to focus on just a few key things. We are all busy and know we need to exercise, but do we build a routine around making sure we actually do it?

Great thoughts! Now, we all need to just go Make It Happen!

Many times we use sports in the business world to support, inspire, and show examples of how to improve. With the start of a new football season upon us, I find this time of year very exciting! I live in a town that is all about SEC college football, boating, and tailgating. There is something special about cruising up the Tennessee River on a beautiful fall day, seeing Neyland Stadium, and tying up next to it with the Vol Navy. What an experience!

So when I saw a Sports Illustrated article titled “The Sabanization of College Football,” I was intrigued. Alabama is Tennessee’s biggest and longest successful rival, and they have won two championships since Nick Saban has been there. Also, UT head coach Derek Dooley worked under Saban at LSU in the early 2000’s. The article discusses the success of Saban’s program, and that is exactly what I have found to be a major key to success for businesses.

What it basically boils down to is that the focus should be all about the process of what they do rather than the end result. Saban focuses on the process that he requires of the players: how they train, how they call the plays, and even how they prepare for school work. The article says it best: “Instead of thinking about the scoreboard, think about dominating the man on the opposite side of the line of scrimmage. Instead of thinking about a conference title, think about finishing a ninth rep in the weight room. Instead of thinking about graduating, think about writing a great paper for Intro to Psych.”

How much can we learn from thinking like that? In my experience, we could learn a lot, especially from how they pick their people. In both sports and business, the one with the best talent will be the winner in the long run. Saban has three key sets of criteria for each player: character / attitude / intelligence. He then breaks it down by position to things like height / weight / speed. Having specific criteria like this keeps your emotions out of it and keeps you from getting off track in making decisions.

What processes and criteria do you use to determine how your company gets work done and what you look for to bring in new talent? We have processes at Efficience, but we still need to work on some areas. I need to push harder for this and inspect what I expect.

I hope you get to enjoy some great fall days with your friends and experience some big game excitement with your favorite team. Go Vols!