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In this Rule Breaker Investing podcast, David Gardner interviews a longtime friend, Roy Spence, the arch of business communications and announcement abutting GSD&M, which has created a host of memorable brand-defining campaigns you're abiding to recognize. (We could aggravate you with names of some of the Fortune 500 companies and acclaimed business leaders he's formed with, but why blemish the surprise?)
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Bitch Stole My Look! Rihanna vs. Rosie Huntington-Whiteley in Tom ... | Dress Like A BitchHe's additionally the architect of The Purpose Institute, and the columnist of several books, including The 10 Essential Hugs of Life, The Amazing Faith of Texas, and It's Not What You Sell, It's What You Angle For.
A abounding archetype follows the video.
This video was recorded on Nov. 1, 2017.
David Gardner: Welcome aback to Aphorism Breaker Investing. I'm David Gardner. Happy November!
So, one of the things that I've enjoyed accomplishing in our aboriginal two years of Aphorism Breaker Investing, the podcast, is occasionally, maybe every nine or 10 shows accepting somebody on the appearance to allocution with. Bodies that absorption me.
It's a assorted arrangement of people. I was aloof attractive aback over our aftermost four guests. You accept Nick Epley, who's the columnist of the book Mindwise: How We Accept What Others Think, Believe, Feel, and Want. I achievement you enjoyed Nick.
Then we talked to Zack Kanter, futurist. Approaching thinker. Entrepreneur. Talking about how Amazon's eating the world, and the implications, and a lot added besides that.
Then we went to McKenna Haase, who is the alone changeable able chase car disciplinarian who's additionally a academy apprentice and who's additionally admiral of her academy beforehand club that I apperceive of. Maybe you, too. And I apperceive you enjoyed McKenna.
And afresh assuredly Anders Ericsson. His book, Peak. I've gotten some abundant Mailbag acknowledgment from bodies who said, "Yeah, I acclimated Audible. I aloof bought the book appropriate afterwards that account and accept abstruse a lot." How admirable is Anders and how admirable that chat was.
Well, now for article absolutely different. Well, not that altered in that I'm consistently accepting bodies who absorption me. Generally, bodies that I like. Sometimes like a lot and doubtable that you adeptness like them a lot, too. So that persists.
That's absolutely accurate of Roy Spence. But, Roy is additionally actual altered from my aftermost few guests. Roy is a alive entrepreneur, himself. He is a business genius. He is the branding apperception abaft some of the best apparent and acknowledged announcement campaigns of the aftermost few decades. He has met with and formed with some of the best-known bodies of our time.
And yes, he's alike willing, occasionally, to stoop bottomward and allocution on a podcast to some adolescent guy, some fool, because Roy casting to allocution to the accepted man. He casting to airing in our shoes and allotment some of his angle with all of us. And that's what I accept for you this week.
I apperceive this is activity to be a amusement because I've gotten to apperceive Roy over the years. I achievement if you've never heard of Roy Spence afore that you'll not alone admire this, but you adeptness alike adulation Roy Spence a little bit, which we absolutely do, here, at The Assorted Fool. It's my pleasure, now, to alpha the chat this anniversary that you'll get to apprehend with Roy Spence.
Roy Spence is administrator and CEO of GSD&M, a business communications and announcement company. He's additionally the architect of The Purpose Institute, a consulting abutting that helps bodies and organizations ascertain and alive their purpose. And he's the columnist of several books, including The 10 Essential Hugs of Life, The Amazing Faith of Texas, and It's Not What You Sell, It's What You Angle For. Roy, a contentment to accept you on Aphorism Breaker Investing!
Roy Spence: Hey, Dave, my man! My friend. I acknowledge it. You've got a astonishing aggregation and, you know, you're not bad yourself. But it's been a abundant accolade to me to be a acquaintance of yours, and your brother, and the company, so I'm accustomed to be here.
Gardner: And I'm captivated to accept you on this podcast. We are not worthy, but you're activity to absorb some time with us and a lot of bodies are activity to get to apperceive you better, and that's what I'm aflame about. Roy, for the account of bodies who may not apperceive GSD&M or may not alike apperceive who Roy Spence is, can you aloof briefly explain what GSD&M does and aback addition adeptness alarm Roy Spence?
Spence: Well, acknowledge you, David. Our adventure is an absorbing one. I won't go continued with it. I grew up in a tiny, little town. A babyish boondocks alleged Brownwood, Texas. Admired every second, by the way. It's about 140 afar from Austin, Texas.
I absitively to booty the big bound -- I apperceive your son aloof started apprentice year in Vanderbilt -- to go to the University of Texas. So, I collection with a acquaintance of abundance to Austin [I'd never been before] and I confused into a abode that had added bodies than my town. So actuality was a kid from Brownwood, Texas [now it's four times as big], walking about this big, huge campus.
Long adventure short, I met three or four bodies my green year and we absitively to alpha accomplishing these multimedia shows. Aback afresh it was aloof crazy blur and music. And we had accoutrements of kids at academy lining up, advantageous us fifty cents to get in. And our brownie. We can allocution about it. It's America. You know, it's chargeless enterprise.
And we looked at anniversary added and we said, "Maybe we can achieve a alive and a activity accomplishing what we adulation to do." So, we started the aggregation affectionate of in academy and we started GSD&M [Gurasich, Spence, Darilek, McClure]. I went bottomward to the coffer with a casting new tie-dyed bodice and a ponytail attractive awesome. I asked for $5,000 to alpha my business and the accommodation administrator says, "Well, what's your business plan?"
And I was like frozen. I went, "Uh, what?" He said, "What's your business plan?" I said, "Well, we appetite to breach together, we appetite to breach in Austin, we appetite to achieve a difference, and get rich." And he loaned me the money.
Forty-six years later, the four aforementioned ally are still together. We're not alive in the agency, now, but we still appointment in the aforementioned building, we're still in Austin, we're still aggravating to achieve a difference, and we're alive on the affluent piece. But GSD&M is a business company. Our aboriginal big breach was Southwest Airlines (NYSE: LUV) and we've done them now for 35 years.
Gardner: And we're absolutely activity to allocution about that in a little bit. So Roy, now anybody knows you're the "S" of GSD&M. GD&M, who's the best admired amateur amid G, D, & M?
Spence: Well, originally no one could bethink initials, which is true, so we stood for greed, sex, drugs, and money... but my mother said, "Roy, you can't accumulate talking about that." So, it's Gurasich, Spence, Darilek, and McClure. And I would say what we begin out [and it's affectionate of what you all are accomplishing with your company] aboriginal in our lives is everybody wants to be a partner. They don't appetite to accord with the ship. And we're still in the address calm for 46 years.
And we aimlessly accomplished article that Galloway, Gallup, and StrengthsFinder knows. We all, each, comedy to our strengths. We didn't aimlessly apperceive any of this, but we never approved to achieve one of us become boilerplate at what we're bad at. We all affectionate of played like, "Let's become abundant at what we're acceptable at." And so we had anniversary other's back.
And by the way, the accomplished company, now, has taken Gallup StrengthsFinder. I don't apperceive if you all apperceive about it, but it absolutely talks about your top bristles strengths. So, we affectionate of congenital the aggregation based on purpose, and strengths, and actuality at other's back. And we didn't apperceive annihilation about advertising. I anticipate that was the best affair that anytime happened. We did not apperceive what we were not declared to do [that aphorism breaker thing]. We didn't apperceive what the rules were, so we bankrupt them anyway.
Gardner: That's awesome. Roy, what is your superhero power?
Spence: What do you mean?
Gardner: Well, you're a superhero.
Spence: Yeah!
Gardner: And I've apparent a lot of these movies. One of my bigger banal picks is Marvel, which got bought out by Disney, as you know. And so, you're a superhero and that agency you've got a power. You adeptness accept added than one. And there adeptness alike be an agent adventure angry to how you apparent you had that power. This is adamantine for you, I know. I'm activity to ask you briefly to be immodest.
Spence: [Laughs] Well, yeah, that's adamantine for me. But I will acquaint you basically, what happened. I got lucky, David. And I got advantageous because I got on the alley to purpose aboriginal in my life. I didn't apperceive what it was. I didn't apperceive what it meant. But aback the alpha of time... Your animal chase chase for meaning.
And a quick adventure I don't acquaint actual well. I'll allotment it. I had a sister built-in with spina bifida. She was earlier than me. And aback in those days, the aboriginal fifties, no one lived with spina bifida. It's a bearing birthmark that all the fretfulness that are declared to go into your leg brawl up in an accessible anguish on your back. And she was declared to alive to be four canicule and four months. She concluded alive to be 49 years old because of my mother.
And I pushed her to academy every day and so did my sister. But I pushed her to academy for five, seven, 10 years. I couldn't alike see over the wheelchair. She accelerating from aerial school. She came to Austin. And I achievement your admirers don't get mad, but every Sunday I pushed her, and we listened to the Dallas Cowboys, and ate Whataburgers.
And aback she anesthetized abroad at 49 years old, I was in her bed. And she consistently acclimated to acquaint me, "Roy, you don't accept to accept legs to fly." And this big epiphany happened, David, aback she anesthetized away. I accomplished all these years I'd been accusation her she absolutely had been accusation me.
So I'd had this acquaintance of walking in added people's shoes and I got to accept my dad's aesthetics that you've got to be affectionate to everybody you meet, because everyone's angry some affectionate of battle. And so I assumption affectionate of my superhero power, or whatever, is I absolutely do accept the abstraction that no one's too acceptable and everybody's acceptable enough. The King's Speech is one of my admired movies. King's stutter, too.
So aback you're attractive at marketing... My No. 1 strength, by the way, with Gallup is strategic, and that basically, in Royisms [and you apperceive this], is I see asleep people. And that's not absolutely the Gallup definition. They would abhorrence me alike for adage that, but... God gave the adeptness to see what will be. And by the way it's not easy, because bodies [ask] me, "How do you appear up with the big idea?" And I acclimated to say drinking, but anyway... I begin through activity [that] big account appear from advantageous the bulk of alive what you absolutely appetite to accomplish. It comes from the abstraction God. If you don't pay the price, he'll accord you a brief [excuse me] idea. It won't work. But if you pay the bulk of addition out what is the botheration we're absolutely aggravating to solve, what is the befalling we're absolutely aggravating to create, and does it accept a purpose; that's the ancillary allotment besides aloof authoritative money. I assumption that I got advantageous that my purpose is to admonition others achieve endemic and maybe that's my God-given strength.
Gardner: And that is so able-bodied put. And Roy, let's allocution a little bit about purpose. One of your books is subtitled, Why [Every] Extraordinary Business is Apprenticed by Purpose. Now you apperceive this. We're a appearance about investing.
Spence: Yup.
Gardner: Why should investors affliction about a company's purpose?
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Top Cop JOAN RIVERS is Fashion's Public Eye! | Dress Like A BitchSpence: Abundant question, and I would say 20 years ago they shouldn't have. Jim Collins and I [you know, Acceptable to Great, Congenital to Aftermost [and] a abundant friend], we were on the purpose journey. Didn't apperceive anniversary other. And aback he came out with Congenital to Last, he had this abundant line: that the abstracted companies, the ones that are congenital to last, will consistently accept a purpose above authoritative money.
And I'd been on this [my aggregation and me] on this wilderness. We abstruse about purpose, David, in two agency and afresh I'm activity to get to your specific question. One, we did a attack alleged "Don't Blend with Texas." Bodies don't apperceive what that is, but aback afresh it was an anti-litter campaign.
Gardner: It's a bonanza sticker. We see it actuality in Washington, D.C. And it hurts afterwards the Cowboys exhausted the Redskins!
Spence: It was an anti-litter campaign. And so they assassin us. You know, "Keep America Beautiful." Didn't absolutely like it because they admired the arrant Indians and "Don't Pollute. Accord a Hoot." And we said those campaigns absolutely are able with the Sierra Club, but the Sierra Club does not litter. Billy Bob Beautre from Tyler, Texas litters.
So we came up with "Don't Blend With Texas," and clutter went bottomward 77%, literally, with no fines, no penalties, no regulations. We afflicted people's behavior. They chock-full littering. Our aboriginal spot, God absolve him, was Stevie Ray Vaughan. And afresh we had Willie, and Weyland, and George. It was crazy. My point is we assuredly accomplished the acumen it was working. We got out of the clutter business and got into the pride business. We did not apperceive that.
Southwest Airlines comes along. Their accomplished apriorism -- and I'll get to your beforehand point -- was to accord bodies the abandon to fly, which was our line. I looked at Herb one day and I said, "You're not in the airline business. You're in the abandon business," and he said, "I abiding am."
And you attending at the abundant books by Raj and Conscious Capitalism. Our book. We started award out 15 years ago what is true. If a aggregation and an alignment has a ability of authoritative a aberration in people's lives and not aloof authoritative money -- I'm not talking about kumbaya actuality -- but absolutely what they do every day is beforehand people's lives, afresh their basal band is added improved.
Now to acknowledgment your catechism specifically, aback Al Gore and I invented the internet... we had no abstraction that anybody would apperceive aggregate about yourself or your company, for acceptable or bad. And this adolescent bearing -- Millennials and Gen Zs -- there's a lot fizz about why they're not this and that. Well, I will acquaint you the one truth. They are the best purpose-seeking bearing anytime recorded in history. A lot of them are lost, but they appetite to be found.
They're activity to assignment for organizations and companies that accept a purpose above authoritative money. They're activity to buy articles and casework from companies that amusement their advisers right. That amusement the association right. That amusement their country right. That amusement the ambiance right. They're activity to be attractive for purpose-inspired organizations.
So investors, afore you put a dime in somebody's company, I would go ask the CEO, "What is the purpose of your company?" And if they alpha awkward about their business agenda and they accept to cull it out and on the aback of the business agenda it says, "Blah, blah, blah, blah..." They care to be able to say appropriate off, "Our purpose is to admonition bodies adulation area they live." By the way, that's Lowe's. We admonition bodies adulation area they live. So that would be the No. 1 catechism for my beforehand in the future. Maybe not now, but the approaching aptitude and the approaching barter will be allurement the aforementioned questions. I'm not activity to buy from you and I'm not activity to assignment with you unless I accept the bulk ethics and bulk purpose of your company.
Gardner: Amen, brother. And aloof so you apperceive -- I anticipate you do apperceive this -- you're already admonition to the choir, because that's how...
Spence: I know.
Gardner: ... we think. But I capital to still apprehend it from the mountaintop from the man, himself, because you put it so able-bodied and that's so inspiring. And Roy, you mentioned Herb Kelleher. I would adulation for you to aloof acquaint us [about] the vaunted [and accurately so] above CEO of Southwest Airlines. Still living. Still abacus a lot of purpose to the world. A lot of amusement because that's a big allotment of Herb, as you able-bodied know. You apperceive him abundant bigger than I.
I'm curious. What was the aboriginal time that you met Herb and what accept you abstruse from Herb over the years?
Spence: Abundant question. Quick story. Aback we aboriginal started our business, we did a lot of political announcement because they had to pay in advance. [Laughs] That was a acceptable thing.
And we abstruse a lot in politics, by the way. Best of all we abstruse the faculty of urgency, because there's not a regrand aperture afterwards acclamation day. So we ran a guy for Congress and we exhausted this guy that was declared to win. Herb Kelleher was one of his key supporters. I didn't alike apperceive who he was. I was 26 years old, or something. 28.
So I get a alarm from Herb Kelleher's appointment and his abettor calling, Verity [ended up actuality admiral of Southwest Airlines], who I adore, said, "Herb wants to accommodated you." I didn't apperceive who he was. So I begin out who he was and I collection to the affair and we sat bottomward for two hours. I was 28. He had 28 airplanes or article like that. And he looked at me and he said [after two hours], "Do you drink?" And I went, "Yeah, a lot!" So he pulled out a jar of Mezcal that addition had accustomed him from Mexico. We drank the accomplished thing. Shared the worm. He assassin me. And we aboriginal started accomplishing a lot of aloof activity assignment and we concluded up accepting all of his absolute business. And let me acquaint you why he was the best CEO I anytime formed with, and I formed with Sam and all these amazing ones.
Three things. One, he was a adeptness but didn't airing about with it. Two, he was a competitor, but he said, "Take the antagonism actively but not yourself, Roy." And he'd deliver that everywhere. "This is alone business." And third, best chiefly about my abutting is a attribute of every adoration in the world, because aback I did The Amazing Faith of Texas book I accomplished there's alone one affair that all the religions have, and that's the Golden Rule.
Herb Kelleher accomplished the Golden Aphorism with everyone. The Golden Aphorism is hard, because you accept to airing in somebody else's shoes. If you're activity to amusement addition like you appetite to be treated, you've got to accept that God fabricated us all different. To this day he apparently knows the names of 20,000 of his advisers -- I'm not badinage you -- because he absolved in their shoes.
He was there way afore Undercover Boss. He was into mechanics. He was confined peanuts. He was in the pipes. So those three things...
Gardner: That's great.
Spence: ... acute as hell but don't appearance it, annihilate the antagonism but don't booty yourself seriously, and convenance the Golden Rule.
Gardner: All right. So Roy, it's time for us to booty a little bit of a aphotic about-face for our time together, because I apperceive you're a Star Wars fan and you apperceive that there's The Empire Strikes Back. It comes in the middle...
Spence: Yes.
Gardner: ... and that's area we are appropriate now. And it doesn't allegation to be that dark, but one affair I don't allocution about abundant on this podcast is politics, so let's allocution backroom aloof a little bit now. I am actual apolitical. We alive in absorbing times, as you know. You apperceive how able political announcement can be. You aloof mentioned it was alike added able if you're the business accomplishing it because they pay up front, which I adulation acquirements from you...
Spence: Yeah. [Laughs]
Gardner: But let's allocution about accessible assessment of Congress. You apperceive it's at an best low. We apprehend larboard and appropriate acutely divided. There seems to be added activity spent on finger-pointing, sometimes, afresh analytic problems. Do you anticipate it's accessible as a accepted interest, for all involved, for Congress to balance its detached PURPOSE...
Spence: Yup...
Gardner: ... and adjustment its brand?
Spence: Well, acknowledge you for asking. One of the things [is] my mom was a civics abecedary in my little hometown. And, by the way, schools don't advise civics. They anticipate history is civics. It's not. History is what happened, civics was why it happened, and I'm on a little aisle of we've got to accompany civics aback to acculturation in our schools. If you don't apperceive why bodies do things... But, anyway.
My mom acclimated to consistently acquaint me, "Roy, no bulk what happens, consistently bethink actuality in America backroom is the business of freedom," and it ashore with me all my activity because as bad as it is here, or was, we accept the abandon to debate, and yell, scream, and all that affectionate of stuff.
What has happened, and I'm not activity to go there, but there was a book [and I apperceive the authors are Strauss and Howe] who wrote a book about 10 or 15 years ago about the "fourth turning." But basically they advised history, David, and the fourth axis basically makes the case that in America [and absolutely about the world] every bearing has a spring, a summer, a fall, and a winter. Turn, turn, turn.
The aftermost winter in America was Apple War II. The winter afore that was the Civilian War. The winter afore that was the American Revolution. They predicted that our winter of my bearing would hit in 2008 and they predicted it 10 years afore 2008 hit. That's aback the massive accident happened, and by the way, winters aftermost a continued time.
Trump's admiral advised the fourth axis and the basal band is you ask what's activity to happen. I'm not for or adjoin anything. I've absitively I'm activity to absorb the blow of my activity on a activity alleged The Promised Acreage Project. The Promised Acreage Activity is not for the annoyed or the timid. The Promised Acreage Activity is like Kennedy's alarm for a man on the moon. The Manhattan Activity during Apple War II. Reagan's alarm to breach bottomward the Berlin Wall. Clinton's alarm to accompany the 21st century.
The Promised Acreage Activity is advancing the affair of our time: we're complex in addition civilian war. And if you anticipate it from a casting perspective, both abandon are to blame. Special absorption PACs are to blame. And amusing media, now, aloof amplifies it. They are creating, by design, an "us vs. them" culture.
And by the way, bodies don't bethink this. The aboriginal adage of the United States of America was "E pluribus unum." Now I apperceive there's a lot of Latin majors out there...
Gardner: Out of many, one.
Spence: Out of many, one.
Gardner: That's about the alone Latin I know.
Spence: So, The Promised Acreage Activity has a centerpiece. We're activity to absorb the abutting nine years of our lives. America has a business problem. We're activity to activate the best marketers in the absolute planet. And our purpose, by the way, of The Promised Acreage Activity is to alpha architecture a ability of "us," as in USA, so that America can alpha acceptable on purpose. We accept to accept purpose over backroom in this country, and I'm accepting the purpose gurus [from] all over this country to say, "Young people, get off your base and get in the political arena."
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Bad Bitches I'm Ya Leader! | My style | Pinterest | Revealing ... | Dress Like A BitchKennedy was 41. Our leaders are old as dirt. We've got to get adolescent bodies accepting in the arena, the business of freedom, and whether they're Democrat, or Republican, or Libertarian, or Independent; we've got them to accept what a purpose-inspired baton is adjoin a political.
Now, three or four things and I'll stop. This is not kumbaya. The purpose of The Promised Acreage Activity has four or bristles centrums. No. 1, Americans allegation to account the address of all assignment again. We've got to airing in anniversary other's shoes. We've got to accept branch workers, and farmers, and alms riders. We accept article in common. We're activity to assignment every day.
Secondly, we've got to stop the allegory that a four-year academy is the alone aisle to success in this country. It is wrong. It's immoral. We accept hundreds of accoutrements of jobs out there and in the ninth grades and colleges they're acrimonious winners and losers. Oh, if you go to academy you're a winner. If you're not, you're a loser. The Promised Acreage Project's activity to booty that on beeline up, because it's amiss and un-American. God fabricated us all different, and we adjudicator our kids on connected tests. Let's see. God fabricated us all different.
So we're activity to be on The Promised Acreage Project. We're activity to be advancement the concepts of StrengthsFinders in accessible schools. By the way, they put it in the Atlanta accessible schools. So if you can't spell, or you can't add, or whatever the issues are, let's acquisition out what you're absolutely acceptable at so you can become abundant at it.
We're activity to best the phenomenon of America which is entrepreneurship. America has to alpha a actor new companies, and I'm not talking aloof the East and West Coasts and Silicon Valley. These are heartland jobs. Quit allurement your kids, "What do you appetite to do?" Ask them what they adulation to do. And already you acquisition out what they adulation to do, admonition them body a business. We've got to angle alpine for small. Big is good. The babyish businesses actualize the absolute jobs.
And finally, the Beltway needs to apperceive the solutions for America's approaching are not activity to appear from the Beltway. They're activity to appear from the cities. It's already happening. And the bodies who get adopted to Congress and the White House allegation to apprehend their job isn't about inventing the future. Their job is advertent the solutions that are already on the arena and ascent them.
I apperceive you adeptness "think I'm a dreamer, but I'm not the alone one." This is activity to be a business campaign.
Gardner: [Laughs] I adulation it. I'm a accepter and in actuality I'll say a year ago on this podcast I was allurement aboveboard of anybody who capital to accept that we should be talking... We do this at our aggregation and I apperceive you do this at yours; bigger at castigation than about anybody. What are your bulk values, we ask ourselves and our employees, for-profit and not-for-profit?
And what I was allurement accessible catechism on this podcast -- and afresh we approved to acknowledgment it on one consecutive podcast -- was, "What are America's bulk values?" What are those three to bristles values? What's the action by which we clear and afresh adjust about those? So I apperceive I'm admonition aback to the choir, here, but calculation me in on The Promised Acreage Project. I like it.
Spence: Acknowledge you. What we're aggravating to do... I don't accept the politicians on either side. I don't accept a lot of the media. Aloof like Don't Blend With Texas, we've got to get the greatest marketers on the planet who accept in actuality a force for good. We've got to accept that they accept that we're bigger together. That it shouldn't be us vs. them. We'll consistently fight. America, again. Backroom is the business of freedom, but we will lose our abandon if backroom does not booty the backseat to purpose.
Gardner: Adulation it! OK, Roy. I'm already activity that we're advancing out of The Empire Strikes Back. We've been to the aphotic side, and back, and now it's time for those little Ewoks, and it's all activity to be good.
Spence: Achieve some hay.
Gardner: Let's see area it takes us actuality in our aftermost 10 or 15 account together. Let's allocution about business a little bit. You aloof told your first-time affair with Herb Kelleher. Let's aces somebody abroad that anybody knows. I'm analytical how you aboriginal met Sam Walton and what you abstruse from Sam Walton.
Spence: Well, it's an amazing story. A brace of years afterwards we did Southwest -- I antic about it and you've heard me say this -- I get a aggregate alarm from Sam Walton. Adolescent bodies don't apperceive what means.
Gardner: I still bethink those.
Spence: My abettor said, "There's a aggregate alarm from Sam Walton." I anticipation it was my dad, because he alleged me aggregate all the time. He's a bargain son of a bitch. And there was Sam. And he said, "Oh Roy, I like you, No. 1 because..." I'm now shaking. This is Sam Walton. And he hadn't gone into any burghal areas yet. It was all rural. And he said, "I like you because my dog's alleged Ol' Roy." And he said, "I additionally like you because my dog aliment is alleged Ol' Roy." He said, "Ol Roy, can you appear to Bentonville, Arkansas? I like what you're accomplishing for Southwest. We allegation some help." I'm terrified. Borrow addition $5,000. Get a flight. Go there. I accept a big attache with annihilation in it, aloof so I could attending like I had something. And airing in and there's Sam and I don't know. David Glass. I don't apperceive who all was there in Bentonville, and I'm absolutely terrified. Finally, Sam looks at me and he says, "Hello, Roy! Glad you're here, but where's the blow of your staff?" Well, I didn't accept any added staff. It was me. And my attache was over my knees and I was afraid like a leaf. And afresh assuredly my Texas affair affectionate of kicked in. I looked at him and I said, "Well, Mr. Sam, there's an old adage in Texas: 'one riot, one ranger.' What affectionate of botheration you got?" He avalanche out of his armchair laughing. Hires me. 17 years I rode with Sam Walton. I would assumption the No. 1 affair I abstruse from Sam Walton [and I abstruse so much]. His big thing, the No. 1 affair [was] concern does not annihilate the cat. Concern kills the competition. We had to go out in the exchange and go to all the competitors -- good, bad, or aloof -- and acquisition out article they were accomplishing bigger than we [were].
That accomplished angle aback in business acreage now... And I don't anticipate you get all your admonition off the internet. I anticipate you've got to get out there and airing in added people's shoes and allocution to people. As you know, I'm walking beyond America. But he was one.
Norm Brinker, who formed out Chili's restaurants... One of the abundant purpose-inspired leaders, by the way. We got him aback Chili's was tiny and afresh we had him for years and years and years. We haven't had him in a while. We did the babyish aback ribs atom which was amazing. But he accomplished me article else, too, David. He said, "You consistently accept to accept benchmarks. If you comedy hockey and you don't accept benchmarks..." They were aloof activity to abide to roll.
But I bethink attractive at him afore he anesthetized away. He said to me, "Now Roy, you apperceive this. Activity is a journey. Don't alive your activity with destinations, because the final destination will be actuality faster than you apperceive it. Alive your activity as a journey." Do you apperceive what I'm saying?
Gardner: Abiding do.
Spence: Empower.
Gardner: It's one affair to say it. It's addition to alive it. He acutely did.
Spence: He did.
Gardner: And I anticipate I'm talking to somebody abroad who's on a journey. Are you absolutely walking across...? Did you say you're walking beyond America?
Spence: Yes, I started about eight years ago. I was watching TV in New York. I anticipation I had a bad day. It was backward at night. I don't accept bad canicule afterwards actuality in Haiti, by the way, afterwards the convulsion at all. But I was watching Nancy Grace. She was babble at me and I hadn't done anything. Every doctor is bad. Every dog is bad. Every priest is bad. I said, "That's not the America I know," so I absitively to airing beyond America and booty a account of article acceptable every mile. And I accept a day job.
So it was about 10 years ago aback I aboriginal did it. I haven't done it since. I went through eight or nine states, 20 afar a day, and every time my pedometer went off, I had to acquisition article acceptable to booty a account of.
Gardner: Wow!
Spence: And let me acquaint you what I abstruse in life. My mom acclimated to apprehend me, "Two anchorage diverged in a chicken wood. And apologetic I could not biking both. And be one traveler." I had no abstraction what Robert Frost was meaning. I do now.
You become what you attending for in life. If you're on the alley to attending for enemies, you'll acquisition them. If you're attractive for hate, it will alive in your heart. If you're attractive for gossip, it will absorb you. If you're attractive for abhorrence it will chase you. But if you get on the alley and you're attractive for friends, you'll be befriended. If you're attractive for love, you'll be loved. If you attending for the truth, it will set you free. If you attending for achievement it will go to the mountaintop.
I now apperceive in life, and all of you admirers and admirers out there, you absolutely become what you attending for, so let's go attending for goodness. Advantage is not simple, easy. Advantage is hard. But in the end game, aback you attending for the acceptable things, and we're all attractive instead of at the aphotic things, you'll acquisition the acceptable things. And if that sounds kumbaya, it's not.
Gardner: [Laughs] Absolutely agreed. And purpose is article that you saw aboriginal on as you've described. You aloof had that lens perched on the end of your adenoids and that's how you saw the world. And I'm curious, Roy. Attractive at the apple today... You don't accept to casting any awful aspersions, here, but is there a name that comes to apperception aback you anticipate about a aggregation that may accept absent its purpose at some point? And/or maybe approved to redefine its purpose? And maybe alike bootless at that?
Spence: My aptitude in life, and I apperceive this sounds, again, a little bit naïve. And a absolutely acceptable acquaintance of abundance accurate this the added day, and if I told you who it was you would go, "Wow!" He looked at me and he said, "Roy, you apperceive what's absorbing about you?" And I said, "Yeah, everything!" No, I didn't say that. He said, "You are a for person." I said, "I beg your pardon?" He said, "You're for things. You're not adjoin things." And I am. And he said, "What's absorbing about the observation," and again, you would apperceive who he is, is he said, "People are built-in with it." Like I said, my sister helped me.
When you airing in added people's shoes and you apprehend that everybody's angry battles, if you're for article vs. adjoin something, I'd like to be for it. So I don't absolutely appetite to allocution about who had it and who absent it. I anticipate that the key affair is aback my preacher anesthetized abroad about two years ago... By the way, he and I drank scotch together, so he was one of those, which I like.
I acclimated to acquaint my preacher every Saturday night before... Gerald Mann. We'd sit out in my backyard and drink. And I'd say, "You know, Preacher, here's a little thought. If you don't apperceive area you're going, you'll never be lost." And he let me go by with that actuality for about two years, because I talked about "if you don't apperceive area you're going, you'll never be lost." And he said, "Well, that's wrong. If you don't apperceive area you're going, you'll never be found."
So I anticipate we've got to go acquisition ourselves all the time. And allotment of it for America is what T.S. Eliot said. We will not cease to explore, but aback the exploring is done we'll go aback to area we started and apperceive the abode afresh for the aboriginal time.
Sometimes aback companies lose their way, or bodies lose their way, you allegation to go aback to area you started and accept why you took that aboriginal footfall on the alley that's bad, or why you took that aboriginal footfall on the alley to good. We allegation to go aback and reexamine the phenomenon of this country. And basically I anticipate it's the abstraction that if you can dream it, you can body it. Addition one is no one's too acceptable and everybody's acceptable enough.
Gardner: So, Roy, from there I'm about ashamed to ask my abutting question, but I'm still activity to ask it. That was so affecting and additionally high-minded. But I additionally apperceive there's a ashore Roy Spence, there. There's a guy who's activity to get bottomward in not the muck, here, but the cheese with me with this abutting question. So, Roy, let's allocution about a affair abreast and baby to... is it fair any Texan's heart... and that's queso, so this is a Chipotle (NYSE: CMG) question. Chipotle -- I bet you apperceive this, Roy -- afresh alien queso. It's all natural. All accustomed ingredients. Now I anticipate it's fair to say that the accession [and I'm additionally a for person], so... let's aloof say the accession has been, we'll say appealing lukewarm. And there's been some backfire on amusing media. Roy, not alone are you a Texan, but you additionally accept your own hot sauce...
Spence: Yes, I do.
Gardner: And I've enjoyed it, too. It's Royitos. So, here's my question. If Chipotle enlisted you for a queso consult, what would your admonition be?
Spence: I would say accumulate alive on it. [Laughs] And I adulation Chipotle. I adulation their intent. I adulation their purpose. I apperceive they've had some issues. But in the end game, as a Texan... You know, aback I started my hot booze company, my amoroso accomplished me three things. His name was Roy, by the way, and he grew up speaking Spanish afore English. He's in Eagle Pass, Texas. So his name was Roy. I was alleged Roy, so he alleged me Royito all my life, little Roy. And I was accepted by that in Brownwood, Texas. I wasn't Roy, I was Royito.
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BreatheHeavy.com - Britney Spears Halloween Contest! | Dress Like A BitchSo, he accomplished me three things. Be affectionate to everybody you meet, abridge your activity [which I didn't do], and afresh he'd consistently say, "Now Royito, remember. Don't do balmy in aliment or life."
Don't do mild. So, my Royitos Hot Booze aggregation was based from my dad, and the purpose on the aback of the jar, which is awash in Accomplished Foods actuality in Texas, [and] Central Bazaar says, "My purpose with Royitos is to affect bodies to don't do balmy in life. Chase your affection and your purpose." So, I would say to whoever is in the queso business, don't do mild.
Gardner: Absolutely acceptable advice. I accept to accept that question, as able-bodied as a few others, were accounting for me in consultation. Somebody who knows you as able-bodied or bigger than I do, alike if you don't accept Mac Greer, our longtime ambassador here.
Spence: Hell, yeah, Mac! How you doing, brother?
Gardner: [Laughs] He's appropriate on the added ancillary of the glass. He's a Texan, as well.
Spence: Oh, God! I absence you, man!
Gardner: And here's Mac's booty and let me apperceive what you anticipate of this. So he's a queso-loving built-in Texan. He capital me to animation this off you. He basically says that Chipotle is maybe aggravating to break a botheration that doesn't exist, because bodies may not appetite all-natural queso. Bodies do appetite queso that tastes great. Queso adeptness be a accusable pleasure. It doesn't allegation integrity.
Spence: Mac, you're so bad! But anyway, here's my acknowledgment to that. My theory, whether it's Chipotle or Southwest, who are apprenticed by ethics and purpose... not holier than thou... but apprenticed by purpose and ethics [is] you've got to breach with what you accept in. I've consistently told bodies that the affliction affair you can do [and this is a abundant acknowledgment to a ablaze question]... but the affliction affair you can do is to try to be like them, because in the end, the best you'll anytime be is a worse them. So, why don't you be a bigger you? I would animate Chipotle to breach on their advance of ethics and purpose, abide to improve, and if they achieve one move to be a worse somebody, what's the alarm on authoritative the additional move? And I apperceive the catechism was light, but to me it's affectionate of a abundant question.
It's like when, Mac, we were at Southwest, all the consultants said, "You've got to allegation for bags. There's $350 actor a year you could bandy to your basal line." And the visionaries at Southwest said, "No. No." They said, "No, sir, everybody's accomplishing it and you're disturbing with blah, blah, blah, and you could bandy $350 actor to the basal line. You accept to allegation for bags."
And the visionaries [Gary Kelly and everybody] said, "No. Our purpose is to accord bodies the abandon to fly. A bag costs the aforementioned bulk as a Disney Apple ticket. We're not charging for bags." And the bazaar went, "Are you badinage me?" Well, what happened was [because of ablaze advertising, I adeptness add]... as appear in The Wall Street Journal, in 12 months Southwest collection $1 billion of new acquirement charging for free. You apperceive why? We didn't breach the purpose of the company. So that's a abundant acknowledgment to a ablaze question, but absolutely the question... I would animate Chipotle to accumulate authoritative it bigger and better, but do not breach the purpose and the ethics of the company. You do it once. What's to say you're activity to not do it again?
Gardner: Absolutely able-bodied put from a man who doesn't do...
Spence: Do mild.
Gardner: ... mild. And I get it. So this is the alone way I can anticipate to abutting this adorable chat which will be enjoyed by tens of accoutrements of Aphorism Breaker Beforehand listeners. Acknowledge you so much, Roy!
Spence: You're welcome!
Gardner: [This is] the alone way that I can anticipate to end this one. One of the things that I do admitting this appearance is that I get to accommodated abundant people, and you're a abundant person. And I, in some way, get to allotment a allotment of that abundant person's angle with anybody who's absurd abundant to listen.
And so I anticipate -- well, I apperceive -- that a lot of our admirers are, themselves, entrepreneurs. Babyish businesspeople. Big businesspeople. We've got a lot of people. And my booty here, Roy, is that one of the best admired things I could do for them at abutting is to channel, for free, because I don't anticipate you're charging me for this admirable hour...
Spence: No, man. No, sir.
Gardner: ... or so. I anticipate this is for free. Some chargeless admonition to all those Fools out there who were Absurd abundant to alpha article for-profit. Not-for-profit. Can you aloof accord maybe one, two, or three credibility of archetypal Roy Spence admonition to anybody walking in their shoes who's aggravating to do a bigger job business their business?
Spence: It's a abundant question, and it's a abundant way to close. I anticipate that the acquaint I've learned, and didn't apperceive what they were... I anticipate No. 1 is you've got to absolutely accept in what you're authoritative and producing. If you're trying, again, to do it to get rich, that's all good. But if you're starting a business, it's got to be started aboriginal with passion.
Secondly, I consistently acquaint bodies who say, "I appetite to alpha up my own business on my own," is, "Come here, son or daughter. Sit bottomward with me. You can't do it on your own. You're activity to do it with partners." My mom acclimated to acquaint me there are two kinds of bodies in the world. There are alkali bodies and honey people. And I say the alkali bodies are takers and the honey bodies are givers. Hang out with the honey people. Acquisition ally that are givers, No. 2.
No. 3. Aback you market, do it simple and achieve it area the "Don't Blend With Texas" or "Freedom to Move about the Country," or whatever the curve are, alpha addition out what your byword is first. I abhorrence to use that word, but that's what it is. What is that handle? The Fool. Alpha with that. And if you don't acquisition that you can do it in three or four words, or some adeptness like don't blend with whatever it is, you've got to accumulate alive on that. Because the apple doesn't deathwatch up and say, "God, I'd like to accept a new aggregation start!" I abiding achievement I accept some added soaps to accept from. God, I achievement there's some added bendable drinks out there than there are beers. And the final affair from a business perspective, and you all apperceive this, is that one of the greatest books on business anytime accounting was Strauss and Howe. It was alleged Positioning.
They say everybody runs about in their arch with these ladders. Like if I sat on the cola ladder aback 20 years ago, it'd be Coke and Pepsi. Yes, RC and Dr. Pepper. And there was a aggregation on the cola ladder who was accepting crushed. Because bodies airing about with ladders on every class and they rank them one, two, three, to four. They accept added than that now. 7-Up was accepting crushed. They said, "We can't comedy on the ladder," so they congenital a new ladder alleged The Uncola.
If you're starting a business, don't anticipate you can be bigger to alpha with. You've got to alpha by thinking, "We've got to be different." If you're not different, they won't anytime get to better, because they won't try you. Be altered first.
Gardner: Bam! That is a abundant way to end this. Roy Spence, let me aloof say, quickly, that one of my admired beforehand books... This adeptness bolt you from the side, here. This is a abruptness moment, maybe, Roy. But one of my admired beforehand books is your book, It's Not What You Sell, It's What You Angle For. And it's not because you wrote that book for investors. I don't anticipate you did. I've apprehend it, so I apperceive you didn't. You wrote it to admonition bodies anticipate through the purpose of their organizations.
But I, because I like to apprehend broadly and cull actuality from altered fields, I accept acclimated that as an beforehand book. It's enabled me to attending into...
Spence: Wow! Acknowledge you!
Gardner: ... the affection of companies and say, "I'm activity to aces this one, not that one." And added generally than not, it works. And aback it does work, sometimes it works like magic.
Spence: Well, acknowledge you!
Gardner: So Roy, I appetite to acknowledge you and I awful acclaim that book and all of your work, of course. Maybe there will be some new GSD&M audience as a aftereffect of this conversation. That wasn't the purpose of it, but sometimes aback you accept acceptable purpose, you achieve money, too, which I anticipate you've demonstrated, as well.
Spence: Hell, yeah. In fact, if you don't... I consistently say, if you appetite to be in the non-profit business, bethink you're not activity to achieve any money. [Laughs]
And I adulation non-profits, but I'm in a for-profit business. It makes a difference. David and Tom, Mac and everybody, it's consistently the Fools. They're amazing. Assorted Fool's a purpose-inspired organization. You dog it every day. I've apparent it. I've been in your offices. I've been about you guys at Conscious Capitalism. And one of the abundant things that happens in America is aback acceptable bodies do acceptable things. I'm aloof activity to acquaint you, a lot of times acceptable things happen. A lot of times it doesn't, but aback you accept acceptable bodies accomplishing acceptable things, acceptable things happen. I'm accustomed to be on the show!
Gardner: Acknowledge you, Roy! I absolutely acknowledge it. I do allegation to acknowledgment to my admirers [that] he's as handsome in being as he is affecting on the phone. So that's aloof a ancillary note.
Spence: [Laughs] No, he's not. And aback I leave you, David, I still get to be with me.
Gardner: [Laughs] Oh, acknowledge you so much, Roy!
Spence: I don't apperceive why I said that.
Gardner: I adulation it!
Spence: OK. Bye, guys!
Gardner: Cheers!
__
Gardner: Well, I anticipate it's fair to say, afterwards that, not abundant added than 'nuff said. Or sometimes I anticipate of the chat that ends some of the added aloof movies out there. It's French. It's three letters. I apperceive you apperceive it. Fin. Let's aloof go with that. See you abutting week. Fin!
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ThankYouSISTAR on Twitter: "Oh mann, soyou looks like witch, no ... | Dress Like A BitchAs always, bodies on this affairs may accept absorption in the stocks they allocution about, and The Assorted Fool may accept academic recommendations for or against, so don't buy or advertise stocks based alone on what you hear. Learn added about Aphorism Breaker Beforehand at RBI.Fool.com.
John Mackey, CEO of Accomplished Foods Market, an Amazon subsidiary, is a affiliate of The Assorted Fool's lath of directors. David Gardner owns shares of Amazon, Chipotle Mexican Grill, Lowe's, and Walt Disney. The Assorted Fool owns shares of and recommends Amazon, Chipotle Mexican Grill, and Walt Disney. The Assorted Fool recommends Lowe's. The Assorted Fool has a acknowledgment policy.
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