State of the Fitness Industry: The Disappearing Middle

State of the Fitness Industry: The Disappearing Middle

Think about the gym industry as a spectrum of coaching.

On the left side, we have gyms selling access. No coaching, just a monthly membership.

On the right side, we have coaches selling only coaching: no access without appointment, everything done one-on-one. In some cases, there’s no equipment at all; clients have to join a gym to do their homework.

In the middle, we have group fitness classes.

That’s where things get murky.

Big globo-gyms offer group fitness classes for free with membership or for a tiny rate. These classes are usually minimalist in terms of equipment—like spin bikes or yoga mats or “pump” classes with PVC weights or Zumba. Coaches are mostly following preset choreography (playlists and moves).

Slightly to the right are the group-class-coaching gyms, like Orangetheory or Barry’s Bootcamp. Coaches still follow preset choreography, but the equipment is more varied and the atmosphere is more exclusive. They can be more intense because the clients accept that intensity coming in.

This is where most owner-operator HIIT gyms sit. Unfortunately, it’s also the same chair that Orangetheory and F45 and the others want to occupy. When the music stops, I think it will be the single-gym owner who’s lost his or her seat.

A portrait head shot of blond author Allison Schrager against a cream background.

Allison Schrager, author of “An Economist Walks Into a Brothel” (Courtesy of Allison Schrager)

This is “the middle” of the industry: Gym owners charging more for group fitness classes and slowly being pushed out because they can’t move to the right (toward individualization).

On Two-Brain Radio, I talked with Allison Schrager, an economist and author of “An Economist Walks Into a Brothel.” Allison has a personal trainer she’s never met. She details her experience, then we zoom out to talk about the meta view of the entire industry and the very real threat to the microgyms in “the middle.”

Click here to listen to the interview and share it with a friend.

In the next article in this series, I’ll tell you how Two-Brain gyms are shifting toward the right edge of the spectrum to separate themselves from downward price pressure, low quality control and high competition.

 

Other Articles in This Series

State of the Fitness Industry: 2019
State of the Fitness Industry: Your Brand
State of the Fitness Industry: New Tools
State of the Fitness Industry: Rebirth

State of the Fitness Industry: New Tools

State of the Fitness Industry: New Tools

I recently bought a treadmill.

I took the advice of other people like me online. I don’t know them, but they do the same sports I do, so their recommendations were worth a $3,000 purchase.

On Tuesday, I received a shipping notification from the treadmill company.

On Wednesday, I got a little email showing me how to unbox the treadmill, how to set it up and how to start out.

On Thursday, I got one more email: some tips to start (and stick with) a walking program—because most treadmill buyers are first-time exercisers.

I used to sell treadmills for a living. I know that most treadmills turn into clothes racks within a month and garage-sale items within a year. I know that the industry was front-loaded: People bought one treadmill in their life, and the transaction ended there.

But home fitness equipment companies have new opportunities. They can sell ongoing subscriptions to training plans or online classes or games like Zwift, Aaptiv, Mirror, Tonal, Hydrow … and they can call it “coaching.”

But we can turn it around on them.

 

First: The Tools You Need

 

When I found online scheduling software in 2005, it was a huge epiphany: We could throw out our messy day planners and let clients choose their own appointments. No more no-shows or last-minute cancellations. And then, in 2006, we found MindBody, which tied payments to bookings! Hallelujah: no more awkward “you owe money” talks with clients!

But since then, software tools in the fitness industry have morphed into slow “scoreboards” with appointment tracking and payments tacked on as an afterthought. (There are a few good ones bucking the trend—read our detailed report here.) But what do gym owners really need to run a business?

I think it’s:

  • A client relationship management (CRM) platform to track clients and leads (we like UpLaunch).
  • An appointment scheduler that integrates with payment processing.
  • Something to track client results and show their progress.

By the end of next year, you’ll need:

  • A way to deliver programming to clients who aren’t in the gym and have them track their progress.
  • A better camera and microphone.
  • A nutrition program for everyone you coach.
  • A fluency in tools available to you outside your gym.

In our report on coaching software, we found that Trainerize has a lot of this covered. It’s not perfect, but it’s probably the best option for personal trainers, and maybe the best choice for gym owners, too. At least for now: Several others were close.

But the tools don’t make the coach. Tools should extend and scale your care, not replace it. In the end, your success will be determined by the personal care you extend, not the emails you automate.

And new tools give you the opportunity to extend that care into new markets. Below, I’ll tell you how to see these tools as opportunities instead of competition.

 

Second: The Tools You Don’t Need

 

Many gyms sign up for things they don’t need and then fail to use them.

Then, when they do an expense audit, they add up what they’ve spent and regret the purchases.

Here’s what you shouldn’t spend your money on in 2020:

  • Marketing agencies that will “do it for you.” Every marketing agency is incentivized to increase ad spend. They’re a lot like mutual fund salespeople: As the market gets worse, they tell you to spend more. It has a ratchet effect that costs you more and more for fewer results. And without skin in the game, marketing agencies really never have to get creative with their own money. Learn to do it yourself, teach a staff person, and continually track and improve your funnel instead.
  • Coaching courses that teach something beyond the scope of fitness. Partner with local health-care professionals instead. Read “Scope of Practice” here.
  • Equipment or education you can’t tie directly to more revenue. Too many box owners are over-educated and poor. Plan to upgrade your coaching education in 2021 and your business education in 2020.

 

Third: The New Opportunities

 

Online spin classes, Zwift, remote trainers—they aren’t your competition. They’re a breeding ground for your next clients.

Every time a spin bike company sells a monthly “coaching” subscription, it’s doing you a favour. The company is teaching its clients the value of coaching.

You don’t have to do that part anymore. All you have to do is reach those people and tell them that you’re the next step.

Now, I’ve screwed this up. When I brought CrossFit to our city, I thought I was competing with P90X. Remember that? A bunch of DVDs that people followed for eight weeks.

A couple of firefighters told me “I don’t need to do CrossFit. I can do P90X at home!” so I thought I was in a life-or-death battle with the program.

What I should have said was, “That’s great! I hear good things. When you get bored, give me a call.” And then I should have called them eight weeks later—because everyone got bored with P90X. They would have been ready for CrossFit. I could have said, “You’ve taken Step 1! Here’s Step 2.”

People sign up for at-home coaching programs for many reasons. One is that they’re scared to exercise in front of other people. They think, “I’ll get started at home and then join a gym.” But if you tell them that’s dumb (like I did), they’ll just stay in their basement. If you pit yourself against the treadmill company, you’re also pitting yourself against its user.

 

Not-so-Obvious On-Ramps

Here’s another story: I used to publicly denounce laparoscopic surgery. I thought our government was crazy to subsidize “the easy way out.” I thought people were wasting their time having their stomachs cinched off with rubber bands. I thought they should exercise instead.

One day, as I was working up a good rant about it to a couple of clients, one of them touched me on the arm to interrupt.

“Chris,” she said kindly, “I’ve had the surgery.”

I was shocked: “You, Cathy? I don’t believe it!”

Cathy was one of our most hardcore CrossFitters at the time. She followed every blog, watched every video. She’d usually be the one to fill me in on the CrossFit Games gossip.

But she’d had stomach-reduction surgery. And she changed my viewpoint with what she said next:

“I needed to feel good about myself before I could join a gym.”

Laparoscopic surgery wasn’t my enemy. It was my on-ramp!

Peloton isn’t your enemy. It’s your on-ramp!

Bowflex isn’t your enemy. Strava and Zwift aren’t your enemies. Orangetheory isn’t your enemy. They’re all on-ramps to your service!

Instead of “us, not them,” we should be saying, “Would you like a bit more?”

 

Leveraging the New Tools

 

Think about online coaching the way you’d think about a library.

“Here is all of the information you’ll ever need organized in one place.”

But nobody learns how to do open-heart surgery at the library. No one quits smoking after reading a book about it. And no one reads the same book every day. Eventually, people need a teacher. And then they need a coach.

If I wanted to attract local cyclists to my gym (and I do, because I am one of them!), I would start by posting my own rides on Strava.

In my Strava profile, I’d post a link to a local group ride. I’d create the ride if none existed.

At the group ride, I’d mention how much my climbing speed had improved since adding front squats.

Then I’d say, “Hey, all of you guys keep asking me about front squats. Tell you what: Let’s just start the ride from my gym next week, and I’ll show you what I mean.”

And then I’d book 1:1 appointments with each person who showed up.

People seek out groups of others like them. The key to marketing is “finding the others.” The key to sales is showing “the others” how you can help them.

I searched for “Peloton” on Facebook and found dozens of open groups and forums. Here were a few categories:

What if I told you that the next 20 clients for your gym were waiting in those groups? Would you dive in and grab those gold coins?

 

How to Take Action in 2020

 

Forget about ads: Start 20 new conversations next year. (Actually, run your ads, too—and retarget the new audiences you create through these conversations. Your ad spend will go down and your conversions will increase.)

Write love letters to the people in these groups.

Talk to them on video. Record a podcast—whatever. Show them you care and how you can help them.

If I had an Orangetheory franchise next door, I’d be happy. Orangetheory is great at taking average people who are scared of intense exercise and introducing them to our world.

Over time, the thing these people once considered “extreme” becomes normalized in their brains. And then it’s easier to introduce something that’s just a little … bit … harder. Instead of taking them from a zero to a 9 on the “things I’m willing to do to lose weight” scale, we can allow Orangetheory to take them from zero to six and then accept the baton.

Microgym owners who open next to globo gyms are also very smart: People can try to exercise on their own and then add coaching when the results slow down.

Turning these potential competitors into new opportunities doesn’t require a pivot in your business model. It doesn’t require a rebrand. It requires a new perspective. That’s really what a mentor is for.

 

Other Articles in This Series

State of the Fitness Industry: 2019
State of the Fitness Industry: Your Brand
State of the Fitness Industry: The Disappearing Middle
State of the Fitness Industry: Rebirth

State of the Fitness Industry: 2019

State of the Fitness Industry: 2019

Change is happening faster than ever before, bringing new challenges, new knowledge and new opportunities.

Online personal training, connected exercise devices and new microgym franchises are now in the market, and their popularity is growing rapidly.

Each brings new market awareness to the value of coached fitness. But each also competes with small owner-operator microgyms. Any of the three elements above could be a huge opportunity; or any could be the end.

In this series, I’ll share insights into industry data that matters to you. I’ll talk about what we know, what others know, and how it affects your business.

I’ll organize these recommendations by key topics:

1. What knowledge can you trust? (this article)

2. How you should position yourself for 2020 (should you affiliate?).

3. How can you leverage these new tools in the fitness world? (new tools)

4. The disappearing middle—why breakeven gyms are folding (my interview with economist Allison Schrager, author of “An Economist Walks Into a Brothel”—Thursday).

5. What should your gym evolve to be? (Saturday)

Some of these posts will be long. That’s because they’re important. As you’re building your annual plan for 2020, you’ll need to have a clear vision of what operational excellence will look like a year from now.

If you don’t write an annual plan—or don’t know how to write one—get to the Growth Phase of mentorship fast. Start with the Incubator.

Most gym owners won’t read this entire post. But the best ones will; you can be sure of it.

Before I get into it, let’s talk about where our information comes from.

First, I have the fortuitous viewpoint of someone who’s been commenting on the fitness industry for over 10 years. Starting with DontBuyAds.com, I’ve written every single day about best practices, ideas and new technologies.

But I’ve also shared what doesn’t work. I hate the online experts who sell untested ideas to gym owners. In my book, that’s close to fraud. Similarly, I don’t like the trolls who attack data-based knowledge just to get a share of the spotlight. So it’s important to understand where our knowledge comes from.

 

Stories and Data

 

Over the years, we’ve taken close to 3,000 free calls with gym owners. These calls last an hour. I did the first 1,500 myself. They cost us tens of thousands of dollars in phone bills and far more in time. We’ve also spent tens of thousands of hours on calls mentoring gym owners (we average around 270 hours on the phone every week). We tracked every story and followed every gym. We know where the real problems are, and we know what gyms have done to overcome them. That’s where our qualitative data comes from: real live conversations with real live gym owners.

Second, we’ve spent years building a quantitative tracking dashboard. Just over two years ago, I told the story of the industry’s need for objective, measurable data to prove what’s working, what’s not working, what has potential to work and what has stopped working.

Three years ago, I was having breakfast with some higher-ups at CrossFit HQ. We were sitting outside a cafe in Santa Cruz, California. I asked how many CrossFit gyms were owned by women; I had an idea that the number was higher than the U.S. average for small businesses. The short answer was, “We don’t know.”

I asked how many members the average box had; I got the same answer. I asked what the average lifespan of a gym was, and the same thing happened. I said, “Someone should be measuring this stuff,” and I got agreement. Then—dead air. So I decided to do it myself.

After hundreds of thousands of dollars spent trying to get an accurate measurement of gym health, we’ve finally got a working system: the Two-Brain Dashboard. To be clear, I don’t sell our dashboard. But spending that money and time allows us to figure out what’s actually working for gym owners, who’s really doing well and, ultimately, what’s true. We get daily data from a large sample size. We get real numbers. We get the truth. And we get it every day.

We’ve done it: the Two-Brain Dashboard is running and collecting data from 800 gym owners every single day. We have bedrock data. Now we can build on it.

 

Why We Don’t Trust Surveys

 

Several companies in the fitness industry attempt to publish an annual survey. Most of them ask us for help or commentary. But we don’t believe survey data is trustworthy for a few reasons.

First, respondents are biased by definition, so you get over-reporting from the best and worst gyms. Second, most surveys are ill defined, so questions can’t possibly provide an accurate measurement. And third, a combination of confusing software and confusing language means that many gym owners can’t provide their real numbers.

Last year, an accountant friend told me that he couldn’t even figure out the numbers required by an industry-leading survey. And I don’t know anyone else who would spend hours trying; most of us just guess.

The value of an industry survey isn’t the data; it’s the analysis. Unfortunately, any analysis built on skewed data is automatically irrelevant.

This year, we published two specific and objective reports on gym management software and coaching software.

 

What Does the Real Data Show?

 

The best gyms are becoming very profitable faster than ever before. And the worst gyms are failing faster.

What makes a gym the “best” or “worst”? Well, it has very little to do with the quality of coaching. Not anymore. A decade ago, quality coaches stood out. But now social media has really leveled the playing field (and better instruction, like the CrossFit Level 1 Seminar, has raised the standard). There are still some mediocre coaches around but few dangerous ones.

The best gyms have the best systems, the most professional staff and a close, personal relationship with each client. I’ll talk more about this in the next article in this series.

The gyms in the middle are in trouble. If you’re selling group fitness—CrossFit, HIIT, bootcamp, whatever—you’re competing against commodity brands. Five years ago, this wasn’t a big threat. But now it is: You can’t run on low margins like Orangetheory or Barry’s. When prices drop, you can’t stay on the roller coaster; you just don’t have the reserves to do so.

But if your gym is really great at offering group training—and that’s all—then you’re facing downward price pressure and some very lean times in the next two years.

 

The 2019 Trends We Saw and What They Mean for Your Gym

 

Marketing: Six-week challenges remain popular, but retention sucks.

People are attracted to six-week challenges. They’re novel and exciting. There’s a clear end point. They align well with what clients see on TV. However, the things that make six-week challenges attractive also make them very poor for retaining clients.

Our solution was to use what works in ads (six-week challenges) in a way that improves long-term retention. We do personal six-week challenges, and the end of the first challenge leads to the start of the second personal challenge. This keeps the process exciting, keeps our clients ascending and keeps them around.

There are still the old bait-and-switch tactics out there: “Sign up for this free thing. Pay here. We’ll give you your money back at the end if you complete it and jump through many hoops—sorry, we’re keeping the money.” They’re crippling gyms.

Nearly 40 percent of the gym owners who booked a free call with our team in 2019 have had a horrible experience with this marketing tactic. Now they have a crazy churn rate, their best clients are gone, and they’re no further ahead.

Get our free Retention Guide with step-by-step instructions here. Money-back guarantee! Just kidding—it’s free.

 

You need to produce content now more than ever.

The spotlight is also swinging back toward long-term media production. Even Facebook now recommends producing long-form content to build trust (we’ve been calling this “authority” for over a decade).

It takes a while to gain momentum, but producing content regularly works. It’s worked for my gym for 14 years (and for me as a coach for three years before that). And authority compounds: I now publish less media for my gym than ever, but we still benefit from SEO, word of mouth and back linking.

Here’s how it shakes out: If you have a bunch of people who would like to try your bootcamp or HIIT class or CrossFit program but haven’t signed up yet, Facebook marketing will push them over the edge. They’ll come in. But if your systems aren’t excellent or you don’t have a plan to retain them after their first “challenge” ends, you’ll never see them again. But if you regularly produce videos and blog posts to help your community, you’ll retain people longer and have higher trust when they do come in. You need both.

If you’re a CrossFit affiliate, you lost your content engine when HQ essentially shut down its media department at the beginning of 2019. Many are just starting to notice the effects. But the effects compound. If you’re not telling your story, and your clients’ stories, and answering questions to serve your local community—no one is.

 

Retention is money—literally.

Great books like “Never Lose a Customer Again” and “Atomic Habits” were money in the bank for gym owners in 2019.

Our data shows that the average gym owner could make an extra $40,000 per year just by keeping the average client three months longer. That means learning how to keep people longer is a great use of your time.

There’s a ton of research money flowing into addiction now—specifically product addiction. We know how the brain becomes hooked. We can use that power for good instead of for evil.

We now teach the “100-day journey” in the Incubator (yes, it ties into personal six-week challenges). That’s a great start. Long term, you need more than pub crawls and the Open to keep people around. Download our Retention Guide for free here.

 

Competition you might not know about.

While many gym owners are eyeballing the big chains or other local HIIT gyms, they should really be looking at the fastest-growing sector of “coaching”: online workouts tied to equipment.

Peloton is the most popular example, but if you haven’t heard of Zwift, TrainerRoad, The Sufferfest, Strava—I’ll spare you the whole list—then you’re missing the elephant in the room. Most treadmill manufacturers are positioning their equipment as part of the program instead of as a mere product for one-time purchase. Most blood-testing companies realize they can sell a coaching program or diet on the back end (and make more money). Many supplement companies are now gating their workout plans and unlocking them with purchase.

In a subsequent post, I’ll write about how to literally turn all of this around and get these ideas working for you. But if you want to read more about why these technologies are so addictive (and see some screen shots), you can read “Don’t Fear the Cyber” from last year.

 

Coaching is about “soft skills.”

The industry has always been dominated by tactical coaching: “Here’s how to teach the snatch better” or “Here’s how to apply the Zone Diet.” But education on the “soft skills”—how to greet people, how to keep them around, how to tailor a group workout to the individual—has always been sorely lacking. In 2019, the most remarkable shift in business thought leadership is that the soft skills are the real skills.

That means coaches should be excellent at speaking in public. They should be warm and encouraging and focus on getting the client to come back. The old coaches who loudly shout “I ain’t here to be no cheerleader!” are mostly gone. Most of the great cheerleaders are still around.

Josh Martin, one of our gifted Two-Brain Mentors, has built an amazing program for developing coaches. He starts with the skills they’ll need to deliver a program (any program) 1:1. Then he teaches them how to deliver a program to a group. Then he teaches them how to program 1:1, and then how to program for a group—using data instead of novelty.

It’s brilliant, it’s simple and it’s backed by an insurance underwriter. I’ve put all my coaches through the first two degrees. Josh is method agnostic (you can use CrossFit or bootcamp or any other tool to train people). I think every coach should start here.

 

Gyms need to be better at selling.

If you’ve followed our blog, you’ve probably noticed an uptick in posts and videos about “selling.”

This is where most gym owners fail.

I wrote “Help First” to provide the philosophy and strategy of selling as helping. But after going through a mountain of data, we realized that we needed to publish tactics, scripts and support. So here’s our YouTube Channel, and here’s my blog series on Building a Sales Engine.

In short, the data went like this: Gym owner closes warm leads well. Friends of clients always want to sign up when they visit for the first time. But their visits are too infrequent. And the referral rate is too passive (most of us just wait instead of taking control of referrals).

Gym owner starts marketing. New leads start coming in. First leads are warm. Gym owner doesn’t sign up everyone, but he or she signs up a ton of people.

Gym owner continues marketing. Leads get colder. Fewer leads sign up. Gym owner starts noticing a lot of no-shows and cancellations. And because the gym owner is not good at sales, the conversion rate is very low (usually 10-30 percent).

We can help best by boosting conversion rates, then by improving “show rates” for appointments, then by improving “set” rates for leads coming from ads. Basically, we walk up the funnel from the bottom and fix everything. We actually rebuilt the Incubator in 2019 to accomplish this better.

 

The flywheel must be round.

Out of the massive pile of data, we’ve identified six areas where gyms must improve. When a gym owner fixes one of these areas, that’s awesome: His or her business flywheel turns a couple of degrees. But if one area is lacking, the wheel is flat. The owner can push and push, but the wheel won’t turn.

Here’s my series on Building an Unstoppable Business (and here it is on YouTube).

We round out the flywheel in the Incubator with proven systems and tactics. Then, in Growth Phase, we push the six “handles” so your wheel turns faster and faster and your business grows. These are the six levers you can push to grow, and data supports the theory. Any coaching program, any book, any strategy that doesn’t take all six handles into account will just create a flat.

 

The Future Is Bright

 

As 2019 ends, I’m more excited than ever. I think first-time entrepreneurs can make an amazing living. I don’t think fitness entrepreneurs have to become slimy bait-and-switch marketers. I don’t think they have to sell shady supplements to make a decent income.

I think they can do all the right things for all the right people for all the right reasons and still become wealthy.

 

Other Articles in This Series

State of the Fitness Industry: Your Brand
State of the Fitness Industry: New Tools
State of the Fitness Industry: The Disappearing Middle
State of the Fitness Industry: Rebirth

What’s More Important Than Culture?

What’s More Important Than Culture?

Cause.

Your cause is more important than your culture.

The members of the tightest teams in the world don’t always like each other. But they work together and succeed because their mission is more important than anything else.

Church ladies squabble. SEAL teams argue. Both groups get the job done and consider their work to be a critical piece of their lives. Neither would quit.

They believe in their cause.

 

A Cause That Unites and Inspires

 

In “Playing The Infinite Game,” I listed Simon Sinek’s five keys to success. They are:

A just cause.
A worthy adversary.
An open playbook.
A vulnerable team.
Courageous leadership.

In this series, I’ve been writing about culture. I told you how to measure and improve your culture, how to design your culture through your own actions, and how to clear the path for the right people to show up. (See below for links to all articles.)

But without a cause, your culture doesn’t produce anything. You just sit there holding hands, uninspired. Eventually, people will leave a great culture in pursuit of noble purpose.

But if you have a noble purpose—or a just cause—people will follow even if they’re unhappy. Their belief in the purpose will override temporary unhappiness.

In “Happiness by Design,” Dr. Paul Dolan tells a story of his friend who “hates her job but loves the work.” She thinks she’s underpaid, often argues with her coworkers and dislikes her boss. But she’d never quit because she believes in the mission (she works at a not-for-profit).

 

What Is Your Mission?

 

You must feel compelled to serve your mission, whether you’re going through good times or fighting for your life. If you started a gym, I know you’ve got this one covered. You didn’t do it to get rich; you did it to help people become healthy. Your “just cause” is so inspiring that helping you achieve it is my “just cause.” No exaggeration.

When you lead with a just cause, your culture will follow. Then you apply the rest: getting the wrong people off the bus, teaching people how to treat you (and one another), improving retention among your staff and clients.

This is precisely why we start The Incubator by getting really clear on your mission.

When people know your cause, they’ll find it easier to talk about you. Forget your “elevator pitch”: When people are inspired by what you’re trying to do, they’ll talk about it. They don’t need to memorize “constantly varied functional movement something something something” because they can say “Chris is trying to save our city.”

Why are you in this?

Does your staff know?

Do your clients know?

Tell them.

And tell me, too. I love hearing about people’s great dreams.

 

Other Articles in This Series

How to Measure (and Improve) Your Culture
Culture by Design
Culture Starts at the Top
Staff Culture and Who Luck

Staff Culture and “Who Luck”

Staff Culture and “Who Luck”

“Heartily know, when demigods go, the gods arrive.” —Emerson

I’ve always had great “who luck.” The right people seem to find their way into my life at precisely the right time.

I met one of my mentors, Dan Martell, at the Archangel Summit. He was speaking at lunch time; my wife and I stood up to get a sandwich, but his first two minutes were so compelling that we didn’t leave the auditorium. Here’s the crazy part: My phone died before his presentation. When I charged it up a few hours later, I found texts from Dan on it. It turned out that he was a CrossFitter, and his CrossFit coach told him I was in the audience. I missed his invitation to come backstage, but I enrolled in his mentorship program less than 48 hours later.

My next mentor, Marcy, showed up at a dinner Dan hosted in San Francisco. My seat was across the table from hers.

I met Mike Warkentin through CrossFit Inc. I was hired as a one-time writer at a competition. He was their editor-in-chief. We were fast friends, and now he’s my partner in Two-Brain Media.

The list goes on and on. Once, at a book signing, an attendee asked me, “Do you attribute a lot of your success to just showing up and meeting everyone you can?”

A year ago, I’d have said, “Yes, that’s definitely it.” But now I think differently.

 

Mediocre People or Great People?

 

According to Dunbar, we can all maintain around 150 relationships. Not all of those relationships are positive. Some are negative (but we hold on to them anyway!), and most are just neutral. We keep up relationships out of a sense of duty, or just for the sake of keeping the 150 seats filled.

But, as Emerson wrote, “when demigods go, the gods arrive.” He meant that some mediocre people are probably sitting in the seats of great people. And until they’re gone, the amazing people won’t sit at your table because there are no vacant seats.

The weaker members on your team are occupying a seat that could be held by a better teammate.

They might be great people. They might be your first cousin. But that doesn’t always make them a great part of your staff.

What effect does one bad apple have on your culture? Catastrophic. Usually, we only see this in hindsight. I’ve heard this 500 times in the Two-Brain Facebook group:

“I knew Nancy wasn’t doing a great job, but I thought I was the only one. But as soon as I removed her, people started thanking me!”

Because people are smart. Your clients are smart, and so are your staff members.

 

Level up and Grow

 

Removing a weak link sends a message. The message isn’t “do this or I’ll fire all of you!” The message is that you will do the hard-hard things to benefit the team, that you care enough about the mission and the good teammates to have tough conversations on their behalf—to say the things only a leader would say and do the things only a leader can do.

In “Founder, Farmer, Tinker, Thief” you’ll find a section called “Apples.” Apple trees try to feed their own dead limbs. They send water and nutrients to branches that are already dead. This splits the tree’s resources and deprives the living branches from their rightful share. When apple trees are pruned, all the water and minerals go to the branches that bear fruit—and the tree thrives. The fruit is better, and the tree is more resistant to windstorms and drought.

Heartily know, when dead branches go, new branches grow.

When demigods go, the gods arrive.

Who, at your table, is adding to the conversation—and who is just keeping a seat warm?

 

Other Articles in This Series

How to Measure (and Improve) Your Culture
Culture by Design
Culture Starts at the Top
What’s More Important Than Culture?

Culture by Design

Culture by Design

By Brian Alexander, Two-Brain Business mentor

Building and maintaining a culture is challenging. The more people in the fold, the more difficult the task becomes.

Here is what I have learned from three years of building my own culture and how I almost let a few people destroy it.

 

Don’t Settle for Good Enough

 

When building a culture, make sure you focus on quality. Be relentless in your search for people who represent the culture you are trying to build. Be very selective in whom you hire. Hire people who represent your culture’s values. If you made a bad hire, fix it immediately. Don’t be afraid of the tough conversation today because I promise you the conversation and problems only get bigger as time goes on.  


A Few Bad Apples Can Spoil the Bunch

 

Negativity spreads like wildfire. It can turn rational/intelligent people irrational very quickly if you don’t catch it before it is too late. If someone doesn’t fit the culture and is negatively impacting people around him or her, do yourself a favor and amicably part ways immediately. Again, be relentless in your vision for the culture you wish to build.

“If you don’t stand for something, you will fall for anything” —Irene Dunne

 

Reward Good Behavior, Ignore Behavior You Don’t Want

 

Spend the most time with the people who add value to your life and add value to your culture. These are the people who will help spread the vibes of your culture far beyond the walls of the organization. It’s a mistake to try to make concessions for the one or two people who aren’t a good fit for your culture. People who are meant to be there will mold to your culture; don’t mold your culture to people because it might look like something far different than what you wanted in the first place.

In the end it, all comes down to good communication and timely action.  

Check out this Ted Talk by Jay Wilkinson:

 

Other Articles in This Series

How to Measure (and Improve) Your Culture

Culture Starts at the Top

Staff Culture and “Who Luck”

What’s More Important Than Culture?