Options
A good life is filled with options.
The more options, typically the better.
I was thinking about it this week when I talked with my youngest son.
We listened to a YouTube recording in which I was interviewed about real estate. They asked me whether a new type of housing that gave consumers more choices was a good idea.
I paused the show and asked Tripp what do you think the answer is, is it good or bad and why?
He said Yes, but he didn't know why.
So, we had a conversation about choices.
Options
A lesson I learned from a wealthy real estate developer early in my career was the idea of optionality.
He said he wanted optionality whenever he was pursuing negotiations, including real estate acquisitions.
He didn't want to be pegged into a corner or stuck in a box.
The ability to go in multiple different directions was a value to him.
As I've moved forward, I've always tried to increase available options. One of the ways I've been able to increase optionality is to build rare skills.
If you don't recall, rare skills combine skills that aren't commonly seen together. For example, an accountant who's good at copy writing, public speaking, emotional intelligence and leadership will have more options than someone who is simply an accountant.
Another thing options do is increase the likelihood that a decision we're going to make is a Type 2 Decision - an Open Door Decision versus a Type 1 Decision - a Closed Door Decision, which I'll go into in more detail after we talk about Inflections.
Inflection Points
In mathematics, an inflection point is a point of a curve at which a change in the direction of curvature occurs.
In business, which is how I've always thought about it, an inflection point is a time of significant change in a situation; a turning point.
Where I've always considered inflection points is with respect to the career of people on my team and how the inflection points impact the retention of people on my team.
Let me give you an example with accountants who I hire straight out of college as CPA students and we can walk through the inflection points they'll face in their career.
Accountant to Senior Accountant
This is the first inflection point.
If a student can't progress from an accountant to senior accountant, they'll likely leave my team.
Fortunately, this is an easy one, the inflection is solved by the student passing their CPA exam and meeting the required precedents of being a senior accountant.
If they can't, we have a serious talk.
There's an opportunity to stay, but I'll likely lose them without a promotion.
Senior Accountant to Accounting Manager
This is the second inflection point.
This is when an upwardly mobile accountant has their next choice.
The choice is to remain in the accounting ranks or move from the accountant role to the manager role.
Often, they want to be a manager, because it seems that's where the glory is - the title, money and fame that comes with it...Little do they know.
For each of these inflection points, we think of how long they're in the role before they inflect.
I'd suggest each of these roles has a 2.5 to 3 year inflection point, which means we can retain someone as an accountant for up to 5 years before a decision needs to be made.
At each level in their career, a person faces a decision, an inflection point. Can I stay in my current role or climb the ladder at my current place of employment? If I can't, then I need to leave.
By its nature, then, I tend to view Inflection Points as Type 1 Decisions - Closed Doors
Jeff Bezos Decision Making
Type 1 decisions are irreversible. A one-way door.
These are decisions we need to make slowly, carefully and deliberately.
We should consult others and approach these decisions based on reasoned logic.
These decisions remind me of inflection points, points where we can move forward but cannot reverse course.
For example, I've always said that when you're considering staying in a role or leaving, you need to be willing to go to the altar. Once you ask for a raise and say you'll leave if you don't get it, you have to go if your bluff is called.
Type 2 decisions are reversible. A two-way door.
When a decision is reversible, we can make it quick without consulting others or being as sticky with our logic and reasoning.
This is where optionality is valuable.
Generally, when we have more options, the odds are we'll be able to reverse direction. We won't be stuck going one way or another but can explore multiple routes to our destination.
Asymmetrical Opportunities
This is where the magic happens.
Not only do we want to increase our options.
As much as possible, we want asymmetrical options or opportunities.
I like to have people think of asymmetrical options as situations where you can lose a little or win a lot.
An example of an asymmetrical opportunity may be a land acquisition contract with 24 months before you're required to close on the land.
Let's talk about what's asymmetrical about it.
If you aren't able to arrive at a sensible deal during the 24 months of due diligence, rezoning, etc., you've lost some due diligence costs, and it's on to the next site—a small loss.
Let's contrast that with the upside scenario. During your 24 months of due diligence, rezoning, etc, not only do you come up with a great potential site, but the market also moves upward 30% during those two years. In this situation, you may be able to close on the land acquisition with no equity using the accumulated land lift.
There's another key part to optionality - TIME.
In business and life, not only do you want to buy or have optionality, but you also want to buy or have time. Time is the ultimate option and can be a key to arriving at asymmetrical opportunities.
As you go through work, life and relationships, look for ways to increase:
When you're able to do these, you're going to put yourself in situations with a higher likelihood of winning and you're going to be more likely to succeed.
If you can achieve all three, the sky is your limit!
TGG Podcast
This week on the Growth Guide Podcast, I talk about The Power of Consistency.
Success isn’t always about greatness. It’s about consistency. Consistent hard work leads to success. Greatness will come.
– Dwayne Johnson
To be great, Embrace the Suck.
Embrace the Suck long enough to be good.
Be good long enough until you become great.
To go from Suck → Good → Great, use Consistency.
Whether positive or negative, consistency compounds.
Consistency is key. It’s about showing up, doing the work, and embracing the suck long enough to see results.
Remember, it’s about the journey, not the destination. Stay consistent, stay disciplined, and never give up.
To hear more about The Power of Consistency, Listen on Apple and Spotify, or wherever you get your podcasts.
Last Word 👋
I love hearing from readers and I'm always looking for your feedback.
How I'm doing with the Growth Guide. Is there anything you want to see more of or less? Which aspects of the Newsletter or Podcast do you like the most?
Hit reply, say hello, and let me know what you think of Optionality, Inflections and Asymmetry.
I'd love to chat with you !
Until next time, All my Best,
Clint
