Episode #501: Rick (Rubin) and Rory (Sutherland)

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: In this episode of The Soul of Enterprise, hosts Ron Baker and Ed Kless dive into the world of creativity and innovation with a focus on the work of two remarkable individuals: Rory Sutherland and Rick Rubin. Sutherland, a leading advertising executive known for his unconventional thinking, and Rubin, a legendary music producer celebrated for his minimalist approach, offer unique perspectives on the creative process. Join us as we explore how these two visionaries approach problem-solving, the importance of intuition in their respective fields, and the impact of their work on advertising and music. We'll discuss key insights from Sutherland's thought-provoking theories on behavioral economics and Rubin's philosophy of creating space for artists to express their true selves.

AI SHOW NOTES

These are AI notes so keep in mind that much of the context of the quotes/snippets is missing.

• Introduction to Rick Rubin and Rory Sutherland:

  • The episode focuses on a conversation between Rick Rubin and Rory Sutherland, emphasizing the importance of creative solutions and the impact of their insights on business and creativity.

• Creativity vs. Rationality:

  • Discussion on why creative people must present their ideas to rational finance people for approval, but not the other way around. This emphasizes the imbalance in decision-making processes in organizations.

• Anecdotes vs. Averages:

  • Anecdotes are considered more impactful than averages because they provide relatable stories that people can connect with, as opposed to abstract numbers.

• Concept of Veblen Goods:

  • Explanation of Veblen goods, where demand increases with the price due to their status signaling effect, and how this concept applies to luxury goods and pricing strategies.

• Importance of Constraints in Creativity:

  • Creativity can be sparked by either abandoning assumptions or imposing additional constraints. The latter can often lead to innovative solutions.

• Feedback Loop between Exploration and Exploitation:

  • Using the example of bees, the importance of balancing exploration (discovery of new opportunities) and exploitation (maximizing existing opportunities) in business strategies.

• Humanity's Misconception of Understanding:

  • One of humanity's greatest problems is thinking we know how things work, highlighting the need for continuous questioning and exploration.

• Rick Rubin's Insights on Creativity:

  • Rubin's book "The Creative Act" is filled with profound aphorisms, such as "The real work of the artist is a way of being in the world," emphasizing the deeper essence of creativity beyond just the output.

• Irrationality in Decision-Making:

  • Example of how emotional and irrational factors often drive major decisions, such as purchasing a car, despite the complex and rational processes involved in creating it.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #500: One Thing! Part Four

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Ron and Ed once again share entries from their "One Thing" journals, so this episode is a bit random, but contains nugget after nugget on curated wisdom for the reading and listening habits of the hosts.

SHOW NOTES

This show was pre-recorded so here are some AI notes. These are AI notes so keep in mind that much of the context of the quotes/snippets is missing.

Celebration of Milestone: Acknowledgment of the 500th show milestone and upcoming sponsorship by Woodard Consulting.

• Concept of "One Thing" Journal:

  • Inspired by an author (AJ Jacobs) who kept a "one thing" journal, capturing significant insights and ideas, leading to regular discussions on the show.

• Quote by Richard Feynman:

  • "Science is the belief in the ignorance of experts." Highlighting skepticism and continuous questioning in scientific inquiry.

• Humor in Leadership:

  • Discussion on the importance of humor in leadership, citing "Levity negates gravity," emphasizing that humor can reduce tension and anxiety in leadership.

• Technological Advancements and Market Dynamics:

  • Example of rapid change from horses to automobiles between 1910 and 1930, and speculation on similar rapid changes with AI and electric vehicles.

• Quotes by Thomas Sowell:

  • "It takes considerable knowledge just to realize the extent of your own ignorance."

  • "Stupid people can cause problems, but it requires a genius to cause a catastrophe."

• Diversity and Inclusion Discussion:

  • Critique of the inconsistency in celebrating diversity hires while getting offended when labeled as such. Importance of genuine merit and capability over mere representation.

• Role of Profit in Social Responsibility:

  • Profit enables B Corps, stakeholder-driven organizations, and companies to meet or exceed their ESG goals, highlighting the fundamental role of profitability in sustaining good work.

• Quotes by Ayn Rand and George Orwell:

  • Ayn Rand: "All wisdom is not new wisdom."

  • George Orwell: "You have to have a PhD to believe something so stupid," pointing out that higher education can sometimes lead to convoluted reasoning detached from common sense.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #499: Pricing Puzzles and Pitfalls

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Join Ed and Ron as they delve into the complexities of modern pricing strategies and their impacts on consumers and brands. We’ll explore the supposed frustration consumers face with the rise of add-on fees and personalized pricing. From airline baggage fees to layered subscription costs, hidden charges make it increasingly difficult for buyers to navigate the marketplace without feeling nickel and dimed. Also, is price-led profit growth coming to an end? Is inflation and recession fear signaling a shift away from growing margins from more sophisticated pricing? Finally, are luxury brands underpricing? Despite their premium positioning, some luxury brands might not be charging enough to reflect their true value and maintain their exclusivity. We’ll discuss the 4Es of pricing high-end brands, and how we can apply that framework to professional firms. Join us as we unravel these topics and discuss how consumers and businesses can navigate the complex world of modern pricing.

SHOW NOTES

Segment one

• At the start of the show, Ron and Ed discussed “The era of price-led profit growth is coming to an end” https://www.marketingweek.com/ritson-price-led-profit-growth/

• “Marketers know customers and how to communicate to them, and the finance department does it doesn’t” https://www.marketingweek.com/ritson-price-led-profit-growth/ 

• Wait….what? “Growth is still the imperative, but getting it from a brilliantly executed pricing [strategy] is surely coming to an end.” https://www.marketingweek.com/ritson-price-led-profit-growth/

• Correct. 100% “Most people I know don't even think about the price of what they're buying at McDonald’s.” —Ed Kless

• Arthur Laffer was asked once, “How many companies do you need in an industry in order for it to be competitive?” And he said, “One.”

Segment two

• Well, we disagree with almost everything in this article but that’s no reason not to discuss it and talk about the counter arguments: https://www.theatlantic.com/ideas/archive/2024/04/surge-pricing-fees-economy/678078/  @jcbeam

• “In a world of constantly shuffling prices, could predictability become a competitive advantage?” Yes, absolutely. https://www.theatlantic.com/ideas/archive/2024/04/surge-pricing-fees-economy/678078/ 

• “If one company refuses to switch to all-in pricing, it can undercut the rest.” That's also known as a marketing opportunity. https://www.theatlantic.com/ideas/archive/2024/04/surge-pricing-fees-economy/678078/ 

• Everything about this article resonated with Ron and Ed: “How Starbucks Devalued Its Own Brand” https://hbr.org/2024/06/how-starbucks-devalued-its-own-brand 

• NSFW. You’ve been warned. “The kid from Brooklyn” talks about Starbucks https://www.dailymotion.com/video/xudxl  

Segment three

• If you plan to go to the AICPA digital conference in Denver this year you can get a preferred price of $100 off If you type in the code DCPA100 upon checkout. Ed and Ron will BOTH be there. https://www.cpa.com/digital-cpa  

• We have a preferred price for Ed’s upcoming event in Dallas with Hector Garcia. Use code FOE900 at this link: https://reframe.shoprocket.io/#!/2-day-event-in-dallas-tx-aug-5-6 @qbkaccounting

• What’s really wrong with the Starbucks customer experience today? Joe Pine nails it with, “Mobile ordering places you and your in-house order in an invisible queue of indeterminate and sometimes seemingly interminable length.” https://hbr.org/2024/06/how-starbucks-devalued-its-own-brand @joepine

• Regarding a coffee shop idea, “Throw in the coffee for free and it subsumes the the actual product into the experience.” —Ron Baker

Segment four

• In segment four, “Are luxury brands underpricing?” https://jingdaily.com/posts/opinion-are-brands-like-burberry-and-balenciaga-underpricing-themselves 

• Editor’s note: I was taught the 4Ps of marketing in college and thought they were crap. How about “the 4E framework of: Emotion, Experience, Engagement, and Exclusivity.” https://jingdaily.com/posts/opinion-are-brands-like-burberry-and-balenciaga-underpricing-themselves 

• Regarding engagement marketing, “When executed well, clients fall in love with a brand and as a result, are willing to invest in a relationship.” https://jingdaily.com/posts/opinion-are-brands-like-burberry-and-balenciaga-underpricing-themselves 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #498: Expanding Your Pricing Paradigm

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Ron and Ed return to their roots and will be talking all things pricing this week including trends in subscription pricing as well as rethinking some previously discussed topics.

SHOW NOTES

Segment one

• Congratulations to @WoodardCompany for the new sponsorship agreement with The Soul of Enterprise! We are JUST getting started and looking forward to the work together. Check them out at https://www.woodard.com/

• Ever since Ron wrote Time’s Up people have been asking him, “Can you use the subscription business model in a CPA firm that offers audit services?” From the AICPA, “are code doesn't address Billings. Certainly nothing that prohibits a periodic billing for both attest and non-attest services”

• Our show today is mostly focused on an article in HBR by Rafi Mohammed called, “Expand Your Pricing Paradigm” https://hbr.org/2023/01/expand-your-pricing-paradigm 

• From the article, 36% of new Allstate auto insurance customers now choose the Drivewise or Milewise pricing options https://hbr.org/2023/01/expand-your-pricing-paradigm 

Segment two

• “KFC Has An All-You-Can-Eat Buffet In Canada & There's Only One In The Whole Country” https://www.narcity.com/all-you-can-eat-kfc-exists-in-a-small-canadian-town 

• Ron today on the show: “Some resorts sell daytime access to pools and fitness facilities, even if you're not staying there. That's clever.”

• When it comes to different pricing models, Tien Zhou’s point is important:  It costs nothing to test this

• Today I learned: If you send a New York Times article to someone, they get to read it for free. And so do you!

Segment three

• On pricing models: Ed understands the “buy now, pay later” pricing model but definitely prefers the layaway. We will put it to the side for you and you can have it when you pay it off.

• “Hopper, the fintech travel company, has a Price Freeze product that guarantees the price of an airline fare, a car rental, or a hotel room for a fixed time.” https://hbr.org/2023/01/expand-your-pricing-paradigm 

• Price break opportunities are a key section of the article we talked about today. Volume discounts, progressive pricing, and mixed bundling are all examples https://hbr.org/2023/01/expand-your-pricing-paradigm 

• Did you know that Big Gulp soft drinks at 7-Eleven can account for up to 10% of sales at stores??? https://hbr.org/2023/01/expand-your-pricing-paradigm 

• The highest price paid for Warren Buffet’s charity lunch auction pre-Covid was $4.57 million. When Buffett announced that 2022 would be the last lunch he’d offer, the auction garnered $19 million! https://hbr.org/2023/01/expand-your-pricing-paradigm 

Segment four

• In Denver? Interested in joining Ron and Ed at a conference? If you are attending the AICPA Digital CPA conference this year use the code DCPA100 for a $100 preferred discount! https://www.cpa.com/digital-cpa 

• In the article, there is a section called “Use Pricing to Enhance Business Efficiency”. What we think he really means is “using pricing to change customer behavior” https://hbr.org/2023/01/expand-your-pricing-paradigm 

• “Mammoth Holdings, which owns multiple car-washing businesses, reports that more than 60% of its revenue comes from customers who pay a monthly fee for unlimited washes” https://hbr.org/2023/01/expand-your-pricing-paradigm 

• From Ron at the end of the show today, “How different is your pricing structure — I’m not talking about the price level — the pricing structure from your competition? This is another incredible source of competitive differentiation.”  

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #497: On Asimov's "I, Robot" - a conversation with Robert Wood

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: With the explosion of ChatGPT and other AI tools recently, Ron and Ed thought it made sense to investigate some of the forebears of AI technology. Certainly, Issac Asimov's I, Robot falls into that category and who better to have a conversation about it than our (TSOE's) goto consultant on sci-fi, Robert Wood. This promises to be a far reaching and insightful conversation that you do not want to miss.

SHOW NOTES

Segment one

• I, Robot was first published in 1950. Robert first read it in high school (implying he’s read it more than that) https://en.wikipedia.org/wiki/I,_Robot_(film) 

• Robert referenced this today: Robby the Robot is a fictional character and science fiction icon who first appeared in the 1956 film Forbidden Planet. https://en.wikipedia.org/wiki/Robby_the_Robot 

• Susan Calvin was the robot psychologist in I, Robot - born in 1982 and died at 82 either in 2064 or 2065 https://en.wikipedia.org/wiki/Susan_Calvin 

• Robert Wood: “So I think I think there's a lot of that fear of the unknown things. We don't understand things we're scared of being more powerful than we expect”

Segment two

• 1/4 Maybe you’ve heard about the Three Laws of Robotics? Yeah, they come from I, Robot. Here they are…

• 2/4 First rule: A robot may not injure a human being or, through inaction, allow a human being to come to harm.

• 3/4 Second rule: A robot must obey orders given it by human beings except where such orders would conflict with the First Law.

• 4/4 Third rule: A robot must protect its own existence as long as such protection does not conflict with the First or Second Law.

• There's a book by Daniel Suarez called Kill Decision where he addresses drones and who makes the decision for them to actually pull the trigger https://en.wikipedia.org/wiki/Kill_Decision 

• A positronic brain is a fictional technological device, originally conceived by Isaac Asimov and, somewhat recently, in place with Data on Star Trek: The Next Generation. https://en.wikipedia.org/wiki/Positronic_brain 

Segment three

• Swiss Startup Connects 16 Human Mini-Brains to Create Low Energy 'Biocomputer' https://www.sciencealert.com/swiss-startup-connects-16-human-mini-brains-to-create-low-energy-biocomputer 

• Would You Kill the Fat Man?: The Trolley Problem and What Your Answer Tells Us about Right and Wrong https://press.princeton.edu/books/hardcover/9780691154022/would-you-kill-the-fat-man 

• One of Ron’s favorite lines from I, Robot is from the robot psychologist: “I see you intrude on my field — as every politician must”

• “My Parents’ Dementia Felt Like the End of Joy. Then Came the Robots” https://www.wired.com/story/parents-dementia-robots-warm-technology/ 

• “Europe’s comparative advantage seems to be regulation rather than innovation” —Ron Baker

Segment four

• We have a preferred price for Ed’s upcoming event in Dallas with Hector Garcia. Use code FOE900 at this link: https://reframe.shoprocket.io/#!/2-day-event-in-dallas-tx-aug-5-6 

• Both Ron and Ed will be at the Digital CPA event in Dallas! Use the code CPA100 when registering at this link: https://www.cpa.com/digital-cpa 

• Robert was joking earlier that Elon Musk believes AI is such an existential threat he didn’t create one but two AI companies. 

• The singularity concept was first introduced by Vernor Vinge. The idea that at some point, computers would become sentient, collectively. https://en.wikipedia.org/wiki/Vernor_Vinge 

• A big THANK YOU to Robert Wood for joining us today. You can find him on X (@bertowud) and on LinkedIn https://www.linkedin.com/in/bertowud/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #496: MetaConsulting and More

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Join Ron and Ed as they explore the concepts behind Ed's new venture, the MetaConsulting Academy. Ed developed the idea of a metaconsultant a few years age when he realized that he has spent the better part of his career consulting to people who do consulting. Furthermore, as they explored way back in show 40, We're All Consultants Now. Listen at http://thesoulofenterprise.com/40. They will also discuss a recent article on robots and dementia patients. As always, fascinating stuff.

SHOW NOTES

Segment one

• So what is the MetaConsulting Academy? First, let’s step into the way back machine of The Soul of Enterprise. We did show show number 40 called “We’re all Consultants now” https://www.thesoulofenterprise.com/40 

• Ed’s idea behind the MetaConsulting Academy is that of helping people who have a high degree of technical expertise in a particular area that never got any of the blocking and tackling of consulting.

• The first event as a part of the MetaConsulting Academy is a joint event with our friend Hector Garcia. It’s in Dallas, TX on August 5th and 6th. More info here: https://www.metaconsultingacademy.com/ 

• Ron’s question of the day: “Why isn't there a Peter Block course at Stanford…Wharton…and Harvard?”

• The six questions that Peter Block talks about: How do you do it? How do you get other people to change? How do I measure it? How long will it take? How much does it cost? How have other people done this?

Segment two

• “Those who have a 'why' to live, can bear with almost any 'how' “ —Viktor E. Frankl

• Gail G, 5 star review: “There is such richness in this podcast. We are working on revising our marketing plan and messaging. The podcast had me realize that we need to conceptualize how we relate to ourselves and what we offer in our CaS practice. After all, we transform business.”

• What can you expect from the first MetaConsulting Academy event? Some self work at your your table, group exercises where we will work together on some language shifts that need to take place, exercises on listening and asking effective questions. 

• If you sign up for the MetaConsulting Academy in the next two days, you can get a preferred price with the code “FOE25” at this registration link: https://reframe.shoprocket.io/#!/2-day-event-in-dallas-tx-aug-5-6  

• If you missed the deadline of June 30 for the preferred price at the inaugural MetaConsulting Academy event, you can still use FOE900 as of July 1 for a slightly less preferred price https://reframe.shoprocket.io/#!/2-day-event-in-dallas-tx-aug-5-6

• Here is the article Ed wrote for the Journal of Accountancy called “Project Management for Accountants” https://www.journalofaccountancy.com/issues/2010/apr/20092306.html

Segment three

• Ron Baker just announced a new speaking event in Denver from December 8-11. Join him at Digital CPA by using the registration code DCPA100 https://www.cpa.com/digital-cpa 

• Professor Boudreaux has an article out in the AIER journal called “Arguments Against Markets” https://www.aier.org/article/arguments-against-markets/ 

• “I can’t easily get my head around the enthusiasm that many people have for active government intervention into market processes.” —Professor Boudreaux in https://www.aier.org/article/arguments-against-markets/ 

• “Government control of prices and wages has almost no effect on wealth production; such control — or lack thereof — determines only the distribution of wealth among buyers and sellers.” —Professor Boudreaux in https://www.aier.org/article/arguments-against-markets/ 

• From William Nordhaus: Entrepreneurs only keep roughly 2% of the wealth that they create outside themselves.

Segment four

• Expiring June 30: Use the coupon code TSOE for a 25% preferred price at REFRAME 2024. More information here https://www.reframe2024.com/  @qbkaccounting 

• “Of Tesla, Toyota, and Taylor Swift” by Dave Norton https://theexperiencestrategist.substack.com/p/of-tesla-toyota-and-taylor-swift 

• From the same article, “[Elon Musk] has a point of view on what customers will want in the future.” https://theexperiencestrategist.substack.com/p/of-tesla-toyota-and-taylor-swift 

• Also from the same article, “And what is the promise of an [brand] experience? It’s a point of view.” https://theexperiencestrategist.substack.com/p/of-tesla-toyota-and-taylor-swift 

• Ron Baker: “What's your firm's point of view? How do you see the world and what makes your vision unique about the way the world works? We don't ask existential philosophical questions like this.” 

• Ed Kless: I believe I can help people who have high technical proficiency and domain expertise, and I can help them get better at being able to get their advice taken by their customers, because they are better at consulting.

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #495: Billing by the nanosecond? Fifth interview with Tim Williams

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Ron and Ed welcome back for the fifth time, author, speaker, and positioning and strategy guru, Tim Williams. Tim has been doing a ton of thinking (as always) about a productized business model and capturing the value of AI for marketing agencies. His lessons are easily applied to all professional firms. In short, when Tim talks, people (including Ron and Ed) listen!

SHOW NOTES

Segment one

• Tim wrote Positioning for Professionals and Ron guarantees you will like this book or he will (literally) buy the book from you. https://www.amazon.com/Positioning-Professionals-Professional-Knowledge-Differentiate/dp/0470587156 

• Tim wrote “The Unscalable Business Model” on LinkedIn. In the article he talks about why advertising agencies are losing their best talent to the client side of the business. https://www.linkedin.com/pulse/unscalable-business-model-tim-williams/ 

• Tim also wrote “The Transformative Benefits of Productizing Your Business Model” in which he states, “Professional service firms are largely allergic to the concept of productization.” https://www.linkedin.com/pulse/transformative-benefits-productizing-your-business-model-tim-williams/ 

• “You'll always bring unique thinking and creative solutions to the problems you're solving for your clients. What we’re talking about is creating a framework or a roadmap, that is the equivalent of a product or program that helps you get from A to Z, in effect a repeatable.” —Tim Williams

• “The first the first initiative in a productization engagement is to just sit down and think through what the recurring problems that you solve for your clients are. That list then inspires what your products can and should be.” —Tim Williams

Segment two

• Ed played the song, “Carolina-O” today live on the show. It is the next GREATEST country hit or it is completely generated by AI. Or both. You decide. https://www.udio.com/songs/6TfsNT72U1QZNphKZayZUy 

• In the advertising agency world, AI is being used in the prospecting space and that is where it is having the most impact according to Tim Williams. For example, think how arduous filling out an RFP can be. 

• AI might be great but it’s not going to come up with an ad featuring a gorilla playing the drums to “In The Air Tonight” on behalf of Cadbury. Wait??? You haven’t seen that ad yet? Thank me later: https://www.youtube.com/watch?v=NHtEyDrD4oA 

• There's a really provocative quote from Sam Altman, co founder of open AI, from just a few months ago, in which he said, “95% of what marketers use agencies for today will easily, nearly instantly, at almost no cost, be handled by AI.”

Segment three

• “Using the principles of behavioral economics can be way more powerful and a heck of a lot less expensive. So I think it ought to be a mainstream competency in in anybody that calls themselves a marketing problem solver.” —Tim Williams

• “Creatives with a wacky idea have to get approval from the logical suits and the finance team. But it never works the other way around.” —Rory Sutherland

• Rory Sutherland has also pointed out that you're going to make investments in your customers when you're not just looking to monetize every single thing that you do.

• “Productization is a way of creating something that will have long term value in a broad based way.” —Tim Williams https://www.linkedin.com/pulse/transformative-benefits-productizing-your-business-model-tim-williams/ 

• Are you familiar with the Scope Metric Unit (SMU) from Michael Farmer? More at this link: https://www.farmerandco.com/proprietary-metrics 

Segment four

• Is trying to bury the billable hour getting old for Tim? Not at all. AI and productization are putting a new spin on it as it creates a new sense of urgency that we haven’t had before.

• Many advertising agencies understand that they are never going to make their margins are never going to afford world class talent again unless they adopt a scalable business model. Those same firms understand that they cannot do that with a labor based approach. 

• Ed asked Tim about the Landscaper story today. Here is the video Ed recorded YEARS ago telling the story (it’s quick…go ahead and watch it now): https://www.youtube.com/watch?v=W5wzlVplZ34 

• What company has the highest revenue per employee ever reported? …Ready?… Craigslist.

• A big THANK YOU to Tim Williams for joining us today. Tim publishes a GREAT email newsletter and you can hop on his list at the bottom of this page: https://www.ignitiongroup.com/propulsion-blog  

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #494: Progressives & Anti-progress — Interview with Kimberlee Josephson

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Ron and Ed welcome Dr. Kimberlee Josephson back to the show for a fourth time. This week they talk about Kimberlee's latest articles published on the AIER site, including:

• Apple’s Big Business: Mises is Right, Sen Warren is Wrong

• Business Schools Undermine Wealth Creation

• Tucker Carlson’s Dollar Store Takedown

• Lina Khan’s Anti-Progress Paradox

• Of Moats and Search Engines: The DOJ’s Coercive Case against Google

SHOW NOTES

Segment one

• Dr. Josephson wrote two articles recently. One on the left and one on the right. Tucker Carlson and Lina Khan. Here are her words in two links: https://www.aier.org/article/tucker-carlsons-dollar-store-takedown/ https://www.aier.org/article/lina-khans-anti-progress-paradox/ 

• Kimberlee (Dr. Josephson) mentioned the movie Dumb Money on the show today. Here is the trailer in case you haven’t seen it yet https://www.youtube.com/watch?v=bmr8YmwnZ3w 

• “This is not to say that marketers haven’t improved their ability to appeal to our interests, incentivize our purchase decisions, and persuade us with readily available buy-it-now buttons. But being coaxed is not the same as being coerced.” —Dr. Josephson from the article “Lina Khan’s Anti-Progress Paradox” at this link https://www.aier.org/article/lina-khans-anti-progress-paradox/ 

• “It's really sending a strong signal that any mergers or acquisitions are going to be scrutinized. Any startup that is hoping to get acquired by a larger firm, it's going to be more difficult to make that case” —Dr. Josephson from this article https://www.aier.org/article/lina-khans-anti-progress-paradox/ 

• A big THANK YOU to Hector and Carlos Garcia for sponsoring the show. Visit REFRAME2024.com! Use the code TSOE for a 25% preferred price @qbkaccounting 

Segment two

• “The best money I ever spent was on pink velour drapes.” —Dr. Josephson from this article https://fee.org/articles/velour-drapes-and-the-wisdom-of-mises/ 

• The Peter Principle! Kimberlee mentioned this on the show today https://fee.org/articles/the-peter-principle-tested 

• Why Are Some Diamond Brands So Expensive? https://fee.org/articles/why-are-some-diamond-brands-so-expensive 

• “Businesses can encourage our behavior for sure.” Colgate encouraging us to brush our teeth or Michelin encouraging us to drive to restaurants. 

Segment three

• “[ESG] is not going to go away because it's too embedded now in the system.” Dr. Josephson wrote an article at this link https://www.aier.org/article/how-did-we-get-here-the-coming-standardization-for-policy-implementation-of-esg/ 

• Regarding a need for ESG or DEI: “At the end of the day, you need to have just a good organizational culture. You need good HR practices and people need to understand the purpose of the organization and their role within it.” —Dr. Josephson

• Brian Kaplan from George Mason University has a great quote: “I can't help but think that you're trying to intimidate me into pretending to agree with you.” @bryan_caplan

• Spend 15 seconds rating the podcast or 30 seconds writing a review that will be read on the air: RateThisPodcast.com/TSOE

Segment four

• “Regulating ‘Junk’ Fees Is Not the Way to Help Bank Customers” from Dr. Josephson. In summary, whenever the government inserts itself in the market it usually does more harm than good. https://fee.org/articles/regulating-junk-fees-is-not-the-way-to-help-bank-customers/  

• Standing in line with oversized porcelain art at the airport counter… “Are you telling us this is a baby carriage?” Yes…yes, it is. Sometimes the attendant is trying to tell you something and steer you away from an unnecessary fee. 

• “Why the Government Shouldn’t Regulate Youth Access to Social Media” by Dr. Josephson https://fee.org/articles/why-the-government-shouldn-t-regulate-youth-access-to-social-media/ 

Bonus note

• Here’s the book by Dr. Stan Ridgley that Dr. Josephson mentioned during the show: https://brutalminds.com/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #493: Reframing Accounting — Interview with the Brothers Garcia

For more information about Reframe 2024 go to REFRAME2024.com and use coupon code TSOE for a 25% preferred price through June 30.

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Join Ron and Ed as they interview Hector and Carlos Garcia about their upcoming conference Reframe 2024: Influential Conversations for Accountants. This conference centers on the transformative power of language in reshaping professional identities, corporate cultures, and business models within the accounting sector. Key topics will include the strategic rebranding of firms and individuals through careful word choice, preparing for challenging conversations with various stakeholders, and enhancing service value via unique offerings and persuasive language. For more information go to REFRAME2024.com and use coupon code TSOE for a 25% preferred price through June 30.

SHOW NOTES (AI generated):

• Reframing the Accounting Profession:

  • The central theme of the podcast, discussing how the accounting profession can be transformed and reframed to add more value and stay relevant.

• The Reframe Conference:

  • Description of the Reframe Conference organized by Hector and Carlos Garcia, focusing on themes like creative business models for accountants and influential conversations.

• Value Creation in Accounting:

  • Discussion about the framework for value creation in accounting, highlighting nine opportunities to create value during client interactions​​.

• Importance of Effective Communication:

  • Emphasis on the need for accountants to improve their communication skills to better explain their value to clients and handle difficult conversations​​.

• Curiosity in Client Interactions:

  • The role of curiosity in client conversations, asking better questions to understand client needs deeply and provide more tailored solutions​​.

• Strategic Pricing and Value Pricing:

  • The significance of having a strategic pricing approach and implementing value pricing to reflect the value provided to clients​​.

• Specialization and Niching in Accounting:

  • The benefits of specializing in a specific area or industry within accounting to become an expert and differentiate from competitors​​.

• Handling Client Questions about Price and Time:

  • Strategies for responding to common client questions about pricing and duration of services to maintain control over the conversation and demonstrate value​​.

• Transformative Impact of Language:

  • How changing the way accountants communicate can transform their relationships with clients and the perceived value of their services​​.

• Overcoming Commoditization:

  • Addressing the challenge of commoditization in the accounting profession by adopting creative and innovative business models and practices​​

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #492: The 'Third Rail' of Pricing — More on Price Discrimination

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Join Ron and Ed for an enlightening episode where we draw pivotal lessons from the extraordinary planning and execution of D-Day, as detailed in the National Review article, "D-Day at 80: How the Allies Won at Normandy and Changed History." Discover how meticulous preparation, clear communication, adaptive strategies, and resilient leadership led to one of history's most significant military successes. We'll translate these historical strategies into actionable project management tips for today's knowledge workers, helping you navigate complex projects and achieve your goals with precision and determination.

Use these show notes to follow along with the audio:

Segment one

• One of our “golden oldies” shows is all about pricing. Episode number 196: Top Ten Pricing Lessons https://www.thesoulofenterprise.com/tsoe/topten

• What is first-degree price discrimination? Also known as perfect price discrimination, first-degree price discrimination involves charging consumers the maximum price that they are willing to pay for a good or service. https://corporatefinanceinstitute.com/resources/management/price-discrimination/ 

• Ed brought up this definition of price today. As George Mason University economist Alex Tabarrok succinctly puts it, “A price is a signal wrapped up in an incentive.” https://www.discoursemagazine.com/p/prices-are-not-the-problem 

• From today’s show: Prices contain three primary functions: They transmit information. They create an incentive to allocate resources to the most valuable use. They distribute income. (The last one is often forgotten)

• What is the technical definition of price discrimination? Price discrimination is different prices for different customers based on their willingness to pay. It doesn't have anything to do with costs.

Segment two

• Have you heard about Reframe 2024 yet? Hector Garcia — long time friend of the show — is at it again helping accountants with better communications skills and influencing conversations with their customers. Use coupon code TSOE for a preferred price https://www.reframe2024.com/ 

• The first full week in August will be a co-branded event with Reframe and MetaConsulting Academy. You haven’t hear of MetaConsulting Academy yet? Ed launched it TWO days ago! https://www.metaconsultingacademy.com/  

• Why is Ron upset with Uber? “I think they fail — big time — with price transparency.”

• Regarding first-degree price discrimination, one of the limiting factors is being too hyper with this. If people don't believe the price is fair they're going to seek out alternatives.

Segment three

• Ron: “So let me tell you my Uber story…” He received a quote from Uber for $116 but there was an additional booking fee of $20 on the receipt. On the return trip, he reserved a time and the booking fee was $26!!! 

• Regarding Ron’s Uber experience: “It’s all about feelings and fairness but that's price transparency. This is why we've been railing against the billable hour for 40 years because it's not transparent in terms of your price.“

• Did you know that before John Wanamaker invented the price tag, most buying in the United States was done by haggling? More here: https://www.pbs.org/wgbh/theymadeamerica/whomade/wanamaker_hi.html 

• As a construct, democracy is the worst way to make pricing decisions. The great thing about the pricing mechanism is you get to decide exactly if it's worth it to you or not. 

Segment four

• A creative idea from Ron today: “Take your specific congressman in your district, and look at the ratio between what he votes for spending divided by what he votes to increase revenue for the government spending over revenue. Take that ratio and you multiply it by your total tax on your 1040.” Genius!

• If you understand price discrimination that's how it was done by cosmetic companies. They have the same makeup sitting in Nordstrom and CVS, but they charge radically different prices for it, because those are different segments of the market.

• Ron Baker on the show today: “When I shop for flights, it's not so much timing. I shop by plane…and they charge higher prices for the Dreamliner.”

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #491: Project Management Insights from D-Day

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Join Ron and Ed for an enlightening episode where we draw pivotal lessons from the extraordinary planning and execution of D-Day, as detailed in the National Review article, "D-Day at 80: How the Allies Won at Normandy and Changed History." Discover how meticulous preparation, clear communication, adaptive strategies, and resilient leadership led to one of history's most significant military successes. We'll translate these historical strategies into actionable project management tips for today's knowledge workers, helping you navigate complex projects and achieve your goals with precision and determination.

Use these show notes to follow along with the audio:

Segment one

• Today’s show was inspired by an article in National Review by Andrew Roberts. Link to the article is here https://www.nationalreview.com/magazine/2024/07/d-day-at-80-how-the-allies-won-at-normandy-and-changed-history/ @aroberts_andrew

• TIL from Andrew’s article in National Review: On D-Day the Allies flew 13,688 [sorties]. In all, some 11,500 Allied warplanes of various types took part in D-Day, of which only four were shot down https://www.nationalreview.com/magazine/2024/07/d-day-at-80-how-the-allies-won-at-normandy-and-changed-history/ 

• “Project management is not a team sport. There's got to be one person ultimately, who's responsible” —Ed Kless

Segment two

• Join Ed and Ron at REFRAME 2024, “INFLUENTIAL CONVERSATIONS FOR ACCOUNTANTS” Use the code TSOE for 25% off the preferred price https://www.reframe2024.com/

• For D-Day, Eisenhower knew it is the act of planning that is important, not the plan itself. His famous quote on this is, “Planning is essential. Plans are worthless.”

• From “Rumsfeld’s Rules: Leadership lessons in business, politics, war in life”, he wrote ”The paradox of planning is no strategy will be executed as originally conceived.”

• Also from Rumsfeld, “What you see is what you get. What you don’t see, gets you.”

• What did Ed notice about the D-Day story from today’s show? The use of humor in the face of dark times. It can be such a strong leadership skill.

Segment three

• Goals vs objectives of D-Day: Overarching goal was to establish the beachhead. It is a goal which is that to which we aspire but may or may not happen. Objectives are the more tangible items of number of troops, number of planes, and so on.

• In project management terms, what is an assumption? Assumptions are facts which you presumed to be true.

• “My notion of scope seep is stuff that we do on our own, because we think that's what the customer wants.” —Ed Kless

• In project management terms, constraints are our barriers to completion. We know about them ahead of time. 

Segment four

• “How Ike Fought Antisemitism” https://www.nationalreview.com/2024/01/how-ike-fought-antisemitism/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #490: Friday Farrago

NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions

SHOW SUMMARY: Time once again for another alliterative assembly with a dash of associated assonance as Ron and Ed pull together a patchwork of punditry. In other words, Ron spent a lot of time on planes last week and digested six issues of The Economist and has a few things to say about it.

Use these show notes to follow along with the audio:

Segment one

• So what is a farrago exactly? It is a confused mixture, from the latin meaning mixed fodder. FAR = corn

• A big thank you to Hector Garcia and the team for sponsoring The Soul of Enterprise. They have a conference coming up called REFRAME. Use discount code TSOE until the end of June https://www.reframe2024.com/

• Did everyone see the Apple ad that was brutally shredded by a subset of fans and critics in the tech space? https://www.youtube.com/watch?v=ntjkwIXWtrc  

• Here’s an update from our tech trends show from last week. The Economist has an article called, “The AI doctor will see you….eventually” https://www.economist.com/leaders/2024/03/27/the-ai-doctor-will-see-youeventually 

• A big thank you to Art Kuesel of Kueselconsulting.com for being a Patron of the show at Patreon.com/TSOE. Thank you Art! 

Segment two

• Will FTX customers be made whole? The Economist talks about how creditors have clawed back significant assets https://www.economist.com/finance-and-economics/2024/04/04/will-ftxs-customers-be-repaid 

• Hello GPT-4o, OpenAI’s new flagship model that can reason across audio, vision, and text in real time: https://openai.com/index/hello-gpt-4o/ 

• This is a great article from Gale Pooley (guest of the show) about “another monopoly undermined”. This one? Diamonds. https://galepooley.substack.com/p/another-monopoly-undermined-by-innovation 

• Last week, FEE quipped, “This doesn't make socialism look very attractive” and published a great called, “A Marxist Professor’s (Failed) Attempt to Explain How Socialism Would Deliver a PS5” https://fee.org/articles/a-marxist-professors-failed-attempt-to-explain-how-socialism-would-deliver-a-ps5/ 

Segment three

• At the beginning of segment three, let’s just say that Ed is having too much with the new ChatGPT-4o model. By the way, if you have not installed this app on your phone — for free — and had a conversation with it, give this a shot.

• Here’s a great article from Andrew Stuttaford, guest of the show, called “ESG/Stakeholder Capitalism: Letting Oil Companies be Oil Companies (or not)” https://www.nationalreview.com/2024/05/esg-stakeholder-capitalism-letting-oil-companies-be-oil-companies-or-not/ 

• Goldene is the latest 2D material to be created since graphene in 2004: https://www.livescience.com/chemistry/worlds-thinnest-gold-leaf-dubbed-goldene-is-just-1-atom-thick 

• Unilever’s new CEO has explained that “the company is underestimated how hard it's going to be to meet some of its environmental targets”. Here’s the article with background titled, “An Example for All? Unilever Gets Real With Environmental Goals” https://practicalesg.com/2024/05/an-example-for-all-unilever-gets-real-with-environmental-goals/ 

• Do you have a burning question for Ron or Ed? We have a NEW feature on the website. Any device will work. Here’s the link: https://www.thesoulofenterprise.com/questions 

Segment four

• “Free Wine at a New Italian Restaurant Is Doing the Impossible” (separating us from our phones) https://www.tfp.org/free-wine-at-a-new-italian-restaurant-is-doing-the-impossible/ 

• Productivity gurus through time: a match-up; James Clear v Arnold Bennett https://www.economist.com/business/2024/04/11/productivity-gurus-through-time-a-match-up 

• A conversation continued from the bonus episode, there is a company called P/S that is offering subscriptions for a higher end airport service (but still a commercial flight). More on their pricing is here: https://reserveps.com/pricing 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #489: Technology Trends with Greg Tirico

In this episode, Ron and Ed welcome back Greg Tirico to delve into the 2024 Tech Trends Report from Future Today Institute, a whopping 980-page behemoth at FutureTodayInstitute.com/trends. The report unveils a groundbreaking concept: the arrival of a technology supercycle, blending AI, biotech, and connected devices to shape a transformative era. Join us as we explore key trends like the burgeoning space race, the bioengineering revolution ushering in a new era of healthcare, the accelerating impact of AI across industries, and the evolution of work environments to embrace flexibility and skill-focused tasks.

Our regular show notes editor was our guest, so, here are some abbreviated show notes:

Overview of the 2024 Tech Trends report from Future Today Institute

• Overall thesis: The economic super cycle comes for technology. The current technology supercycle is so pervasive we may not even notice it.

  • What is a super cycle again? "Super cycles are commonly defined as lengthy periods of economic expansion, often accompanied by growing GDP, strong demand for goods leading to higher prices and high levels of employment.”

• Major factors in the tech supercycle:

  • Artificial intelligence

  • Biotechnology

  • Connected devices

• In and of themselves these trends can be significant but their convergence is what the report is calling out. This is the technology supercycle to which they refer.

About the report

• In our guest’s opinion, this is the best replacement yet for Mary Meeker’s internet trends report (which appears to have ceased publication in 2019)

• 17th edition of the tech trends report

• A ridiculous 980 pages at FutureTodayInstitute.com/trends

  • We are able to talk about and use this material because of the gracious Creative Commons license applied to it by the Future Today Institute. “This material is copyrighted by Future Today Institute and licensed under the Creative Commons 4.0 International License (CC BY-NC-ND 4.0).”

• There are 20 total trends in the report. We covered four on the show: Space, Bioengineering, Artificial Intelligence, and Work Environments

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #488: Wealth’s Way — The Wisdom and Wonders of Shareholder Capitalism

Thomas Sowell has written that “Profits are perhaps the most misconceived subject in economics.” Join Ed and Ron as we explore R. David McLean’s superb new book, "The Case for Shareholder Capitalism: How the Pursuit of Profit Benefits All." Rooted in mutual benefit and prosperity, shareholder capitalism fosters an environment where individuals thrive. Shareholder capitalism upholds the belief that profit serves as a catalyst for societal progress, driving innovation and growth.

Use these show notes to follow along with the audio:

Segment one

• C. S. Lewis: “We don’t need to be taught new ideas so much as to be reminded of old truths.”

• 1/3 The difference between accounting, finance and economics: Finance is defined as the science or study of the management of funds, the circulation of money, the granting of credit the making of investments, and the provision of banking facilities

• 2/3 Accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying and reporting the results

• 3/3 Economics is social science concerned with analysis of the production, distribution and consumption of goods and services.

• “If you are taking end of year discounts, you’re basing your pricing on the position of the Earth on its revolution around the sun. There's a word for that. It's called astrology.” —Ed Kless

• From today’s show: Cashflow is ultimately driven by profits over the long run. They're the same but the timing and differences can be massive. Just look at Amazon for an example.

• Thomas Sowell: “Profits are perhaps the most misconceived subject in economics.

Segment two

• On the discussion of shareholder capitalism during today’s show: Shareholders eat last. By definition. Look at the P&L. 

• From R. David McLean’s superb new book, "The Case for Shareholder Capitalism: How the Pursuit of Profit Benefits All,” he points out many young firms have negative profits, but are still worth millions or even billions of dollars. https://www.cato.org/multimedia/events/case-shareholder-capitalism-how-pursuit-profit-benefits-all 

• Rate. This. Podcast. In 15 SECONDS or less! Just use this link: RateThisPodcast.com/TSOE

• From McLean’s book, the stakeholder fallacy is defined as the popular misconception that corporations put the interests of a shareholder first and overlooks firm's other stakeholders. The fact is, they all are on an equal footing.

Segment three

• In Chapter 8 of David McLean’s book, he talks about the definition of corporations based on a business roundtable. His excerpt is attached.

• What is stakeholder capitalism? There are only two possibilities. 1) stakeholder capitalism is the same as shareholder capitalism 2) stakeholder capitalism is an oxymoron https://www.cato.org/multimedia/events/case-shareholder-capitalism-how-pursuit-profit-benefits-all 

• If you're driving short term benefits at the expense of long term profits than your stock price is going to decrease https://www.cato.org/multimedia/events/case-shareholder-capitalism-how-pursuit-profit-benefits-all 

• Market cap is proof of a future focus. If we weren't focused on the future, we wouldn't have market capitalization. So the fact that it exists at all is proof that the short term thing is a fallacy. 

Segment four

• From The Case for Shareholder Capitalism: How the Pursuit of Profit Benefits All, “Stock repurchases do not inflate or have any mechanical effect on stock prices. This is Finance 102.” https://www.cato.org/multimedia/events/case-shareholder-capitalism-how-pursuit-profit-benefits-all 

• David Deutsch, physicist: “There is no resource management strategy that can prevent disasters. But there are ideas that can cause disasters and one of them is notoriously the idea that the future can be scientifically planned.”

• What a great book from today’s show. Check out "The Case for Shareholder Capitalism: How the Pursuit of Profit Benefits All.” https://www.amazon.com/Case-Shareholder-Capitalism-Pursuit-Benefits/dp/1952223881 

Buy on Amazon

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #487: Is the CPA shortage a feature or a bug?

Much digital ink has been "spilled" and podcast conversations had about the dearth of both accounting degree graduates and CPAs. In this episode, Ron and Ed will explore the topic including the "150-hour rule," reciprocity, licensure, and what are the possible ways to avert a crisis.

Use these show notes to follow along with the audio:

Segment one:

• Breaking news from desk of The Soul of Enterprise. We are now seeking sponsorships along with the announcement from Ed at the beginning of today's show.

• Ron just finished reading the new book from Ben Horowitz, “The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers” https://www.amazon.com/Hard-Thing-About-Things-Building/dp/0062273205 

• We’ve done a show before on occupational licensure which is related to today’s topic about the CPA shortage. More information here https://www.thesoulofenterprise.com/225 

• You can rate The Soul of Enterprise in less than 15 seconds at this link: RateThisPodcast.com/TSOE

Segment two:

• “Hence, requiring 150 hours instead of 120 acts as a barrier to entry for potential CPAs with no accompanying increase in candidate quality.” More here: https://www.thecgo.org/research/reducing-a-barrier-to-entry-the-120-150-cpa-licensing-rule/ 

• “The average starting salary of graduates with an accounting degree is not much different than those with one in complimentary acumens like finance or information systems.” https://www.cpajournal.com/2023/11/27/rethinking-the-150-hour-requirement-for-cpa-licensure/ 

• “If you look at all the regulations from all the state societies, 90% of them are because we have this monopoly on the test function…the audit function.” —Ron Baker

• Here is the CATO event on licensing restrictions and the CPA mentioned by Ron and Ed today https://www.cato.org/events/licensing-restrictions-certified-public-accountant-cpa-shortage 

• Here is the interview Ed did with Herschel Frierson, the 27th Chairman of the Board of Directors with the National Association of Black Accountants https://www.youtube.com/watch?v=U5jIOPoECZA 

Segment three:

• Boz Bostrom, the MNCPA Board Chair, prepared some remarks and recorded them as a part of the Minnesota Senate committee hearing on proposed alternatives to CPA licensure https://www.linkedin.com/posts/bozbostrom_i-was-scheduled-to-testify-today-as-a-part-activity-7171612639976960002-jOtu/ 

• Here is a great example of a certificate program as opposed to licensure. Grow with Google: https://grow.google/certificates/ 

• Ed spoke with Geof Brown on righting retention in the accounting profession. More here: https://sagethoughtleadership.com/geofbrown 

• Ed also spoke with Kari Natale on the CPA Diversity Report: Uncovering the Barriers to Success. More here: https://sagethoughtleadership.com/natale 

Segment four:

• Humility is important. “I think the general public would notice a garbage man shortage before they noticed the CPA shortage.” —Ron Baker

• Join us again next week and remember — please send an email to asktsoe@verasage.com if you are interested in having a sponsorship conversation with us. We are now actively accepting new sponsors!

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #486: Hearth of a Cheetah — Second interview with Magatte Wade

Ron and Ed are thrilled to have Magatte Wade back on the The Soul of Enterprise to talk about her new book, Heart of a Cheetah: How we have been lied to about African poverty and what that means for human flourishing. Magatte Wade is a bold Senegalese entrepreneur and unflinching prosperity activist, determined to shape the destiny of her African homeland. In her riveting memoir, she challenges Africans to redefine their narrative, casting aside imposed inferiority to reclaim their innate brilliance. This is not a recounting of poverty and politics. It's an indictment of a world that views Africa as nothing more than a colonial chessboard, with charity acting as the block that keeps Africans stuck.

About Magatte Wade

Magatte Wade is the Director of the Center for African Prosperity at Atlas Network, the leading organization of African free-market think tanks. She was listed as a Forbes “20 Youngest Power Women in Africa,” a Young Global Leader by the World Economic Forum, and a TED Global Africa Fellow.

Use these show notes to follow along with the audio:

Segment one

• Magatte Wade first joined us WAAAAAAY back on episode number 160. Welcome back! https://www.thesoulofenterprise.com/160 

• Magatte’s new book is about how Africa got to where it is today and how the poorest region in the world gets ahead from here. 

• What is a Cheetah Entrepreneur? The cheetahs are those of us who are not waiting on anybody. It's up to us and we're not going to wait for anybody to improve our lives, especially not for government.

• With respect to a free and open market, Magatte says, “To be free is to have a power of exit and for exit to be valid, it has to be something that's achievable.”

Segment two

• Magatte has 3 reasons she believes Africa remains poor. 1) It’s the most over regulated region in the world 2) foreign aid 3) the anti capitalism bias of mainstream media, academia, and Hollywood

• What do you think is a solution to poverty? “I kid you not. You will hear everything under the sun, but you won't hear the right response […] You're not going to hear the solution to poverty is prosperity.” —Magatte Wade  

• This is PERFECT! “Poverty is solved by prosperity. Prosperity is built by entrepreneurs.” —Magatte Wade

• Poverty, Inc. is a beautiful documentary that gives you a great understanding of how foreign aid goes straight back into the pockets of the donor countries through different NGO agencies. More here: https://www.povertyinc.org/ 

• “NGOs know how to give a man a fish and how to train a man how to fish. You can teach a man how to fish, but until unless that man has access to the ocean it's still game over, it is still not happening.” —Magatte Wade

Segment three

• 1/2 On segment three today, Magatte talked about her personal struggles to open up a business in Senegal a few years ago. For starters, to legally register her business was a process that could easily take two years!!!

• 2/2 Once her business was registered, she needed employees. Copies of the employee agreement were physically taken to the labor inspection office after being reviewed by an expert. And that’s how regulation hurts. 

• When starting a new business in Senegal: “At first we were going to three different government offices, once a month, just to pay payroll related taxes. Imagine the waste of time!” —Magatte Wade 

Segment four

• What does Magatte think about the statement, “Africa is poor because it's overpopulated.” She says, “it's one of the most ridiculous things I've ever heard. And also it's not understanding the history of the world.”

• Related to so called “overpopulation” in Africa, Magatte says, “It's only when nations actually become more prosperous, that you have less kids.”

• “If you cannot support me on my journey to 3.5 billion prosperous Africans by 2050. If you can support me in that journey, please get out of the way for your own sake,” —Magatte Wade

• A big THANK YOU to Magatte Wade for joining us today. Her book, The Heart of a Cheetah, is available now. More information here: https://www.magattewade.com/book 

Buy on Amazon

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #485: Glorious Gallimaufry

Well, it has happened again, Ron and Ed's stacks of stuff are bursting beyond their britches, so it is time to trot out some alliterative alchemy to rightly rectify the seriously sticky situation. Okay, enough already. Just sit back and enjoy the ride.

Use these show notes to follow along with the audio:

Segment One

• 45% of CEOs surveyed in PwC’s 27th Annual Global CEO Survey said they do not believe their companies would survive more than a decade if they remain on their current path https://hbr.org/2024/04/ceos-is-your-business-strategy-bold-enough

• For CEOs, you should ask, “Is my strategy bold enough, and do I have the right team to execute it?” https://hbr.org/2024/04/ceos-is-your-business-strategy-bold-enough 

• “Strategy is not strategic planning.” —Ed Kless

• “I would say a lot of firms don't have a clear strategy. If they do, it's kind of by default. “ —Ron Baker

• Are Movies Better When We Watch Them in Theaters? Here is a statistical analysis from StatSignificant: https://www.statsignificant.com/p/are-movies-better-when-we-watch-them 

• From The NY Times, you can now share unlimited articles that recipients can read for free. “Oh, it’s behind a paywall” may not be a thing anymore when sharing an article with someone. 

Segment Two

• From former guest Andrew Stuttaford, “Stranded: The False Promise Of Electric Cars” https://www.andrewstuttaford.com/archive/2023/12/24/the-false-promise-of-electric-cars 

• “This is central planning with these EVs […] and it's just this is not how markets work.” —Ron Baker

• California’s New ‘Fast Food’ Wage Law Will Probably End Badly. We Just Don’t Know How. https://thedispatch.com/newsletter/capitolism/californias-new-fast-food-wage-law-will-probably-end-badly-we-just-dont-know-how/ 

• Have McKinsey and its consulting rivals got too big? https://www.economist.com/business/2024/03/25/have-mckinsey-and-its-consulting-rivals-got-too-big 

Segment Three

• “Has Intergenerational Progress Stalled? Income Growth Over Five Generations of Americans” (spoiler: no, it has not stalled) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4741448 

• Using a post-tax, post-transfer income measure […] Millennials had a real median household income that was 18 percent higher than that of the previous generation at the same age. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4741448 

• What happened when Exos shifted to a 4-day workweek? Burnout went down and effectiveness went up. https://www.fastcompany.com/91072238/wharton-experts-4-day-workweek-pilot-results-exos 

• Even if the 4-day workweek is WILDLY successful, Ron has something to say about it: “I'll tell you one for sure way that you will not get a four day work week and that is if your firm bills by the hour.”

• Related to a former TSOE guest Dr. Azra Raza (episode 289): “Cancer signs could be spotted years before symptoms, says new research institute” https://www.theguardian.com/science/2024/mar/31/cancer-signs-could-be-spotted-years-before-symptoms-says-new-research-institute 

• “Generative AI develops potential new drugs for antibiotic-resistant bacteria” https://med.stanford.edu/news/all-news/2024/03/ai-drug-development.html 

• “This AI can find billions of new antibiotics, even for superbugs that don’t respond to treatments” https://www.zmescience.com/medicine/ai-billions-new-antibiotics-0423432/ 

Segment Four

• “Productivity Is About Your Systems, Not Your People” https://hbr.org/2021/01/productivity-is-about-your-systems-not-your-people 

• The purpose of a project charter is to ensure that both authority and responsibility is given in in direct proportion to one another. Ron and Ed did an entire show on proper project initiation: https://www.thesoulofenterprise.com/79 

• Former guest James Harrigan wrote a fun story called, “Baseball, a Beer, and a Dog”. More here: https://www.aier.org/article/baseball-a-beer-and-a-dog/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #484: Scaling New Heights — Sixth interview with Joe Woodard

Ron and Ed welcome for an unprecedented sixth time, Joe Woodard. As always this will be a wide-ranging conversation but likely topics include: plussing your offering, why people don't value your offering and what to do about it, the future of CAS, and, maybe, just maybe, Apple Vision Pro.

About Joe Woodard

As an author, consultant, business coach, and national speaker, Joe has trained over 150,000 accounting and business professionals in areas of practice development, changing technology trends, strategic consulting, and how to maximize the use of accounting software in their practices. Joe founded Woodard Events, LLC (aka Woodard® a training and resource organization for accounting professionals that provides education, community, and coaching offerings through onsite training events, virtual training events, and intensive, coach-led practice advancement courses. Joe is the host of one of the world's leading training conferences for accountants and bookkeepers called Scaling New Heights®. For every year since 2014, Joe has been recognized by Accounting Today as one of the Top 100 Influential People within the accounting profession.

Use these show notes to follow along with the audio:

Segment One

• What does CAS mean to Joe? What does the A stand for? In over 50% of firms surveyed, the A stands for accounting. However, it will end up being Advisory because that is how the AICPA defines it.

• “Client Accounting Services and Client Advisory Services are two very different business models. One of them is McDonal’s and one of them is Mortons.” —Ed Kless

• To keep the Mortons/McDonald’s analogy going: “We need to eliminate McDonald’s hamburgers and only sell Mortons. Leave the accounting to H&R Block…who is now also doing bookkeeping.” —Joe Woodard

• Here’s a thought from the conversation with Joe today: Smaller accounting firms are going to form networks, also known as co-firming, as they continue to shift to CAS

Segment Two

• We don’t value utilities in Western economies. It has nothing to do with affordability. We value unique and differentiated experiences compared to that thing you have to buy (like a gallon of gas).

• Joe has reimagined pricing tiers. We are not clearly defining the distinction in the products/services we are selling. Category 1 is accounting, category 2 is controller, and 3 is FP&A inclusive of controllership and accounting.

• “A brain surgeon requires more knowledge to do his job than a nutritionist but the nutritionist can be transformative.” —Joe Woodard

• Great thought from Joe today when thinking about new customers: Start with the end in mind. Find a very specific way you can increase a client’s wealther and remember that wealth is not always financial. 

Segment Three

• From the conversation with Joe today, plussing the offering is bigger than just, “I’m giving you a higher level of value.” Plussing is first and foremost…subscription based

• Loyalty programs are nice if people want to be able to earn their way into an experience. But you should also be able to buy your way into it. D23 from Disney is a great example of this.

• Oculus vs Apple Vision Pro: The app ecosystem is still causing Joe to spend more time on the Oculus. It’s clear to him Apple just isn’t there yet.

• Joe mentioned that his Apple Vision Pro persona is creepy. This isn’t a picture of Joe but it does compare a journalist to their Apple Vision Pro persona. 

Segment Four

• Attention and capacity is a great way to think about time well spent with a customer. It’s not “time” because that’s not a great word. It’s attention and capacity.

• Joe mentioned a book called “Quantum Supremacy” by Michio Kaku and encouraged all TSOE listeners to read it. More here: https://www.amazon.com/Quantum-Supremacy-Computer-Revolution-Everything/dp/0385548362 

• Also, Joe did a great interview with Michio Kaku. It was excellent (Ron’s word) and can be found here: https://podcasts.apple.com/us/podcast/episode-78-dr-michio-kaku-quantum-computing-the/id1110209218?i=1000646285232

• If you like the podcast with Michio Kaku, this is part of a regular podcast series from Joe Woodard and Heather Satterley. More info here: https://www.woodard.com/podcast 

• A big THANK YOU to Joe Woodard for joining us today. Scaling New Heights is coming up soon! Registration is open at this link: https://www.woodard.com/scaling-new-heights-2024 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #483: Subscription Economy Update — March 2024

Join Ron and Ed as we dive deep into the dynamic world of subscription business models. With the landscape constantly evolving, we'll bring you the latest insights and happenings that are shaping the future of subscriptions. Whether it's the introduction of new technologies, shifts in consumer preferences, or innovative strategies companies are adopting to retain subscribers, we've got it covered. Stay ahead of the curve and understand what these changes mean for businesses and consumers alike. Don't miss out on this insightful update – tune in to stay informed!

Use these show notes to follow along with the audio:

Segment one

• “[The subscription economy] has become our new normal.” —Tien Tzuo

• “Is the Subscription Economy over?” This is what Tien Tzuo asked in his most recent Subscribed newsletter https://www.linkedin.com/pulse/subscription-economy-over-tien-tzuo-w6vwe/?trackingId=16QSer9BSGylg9hNp4BoOg%3D%3D 

• Today I learned: Of the 10.36 million subscribers to The NY Times, 9.7 million are digital-only

• Of the companies expanding their understanding of subscription, there are 3 strategies in common: 1) monetization is bigger than pricing, 2) strategies are living and evolving, and 3) they address the root questions

• Most of segment one was based on the most recent post from Tien Tzuo (former guest and CEO of Zuora) at this link: https://www.zuora.com/subscribed/is-the-subscription-economy-over/ 

Segment two

• For the second segment, Ron and Ed are talking about the article titled, “Follow the dots: Why a customer-centric world requires a demand-led strategy” - More here: https://www.zuora.com/subscribed/why-a-customer-centric-world-requires-a-demand-led-strategy/ 

• “The consumer isn't a moron; She is your wife” —David Ogilvy

• 1/2 How big does a business or personal transformation really need to be? Don’t over-exaggerate it in your mind. It’s doesn’t need to be a complete transformation. Take the small steps first.

• 2/2 For example, with a tax practice customer: “I used to think of you as someone who did my taxes. Now I see you can also provide guidance and insight to help with better planning.”

• Transformations that are not MAJOR transformations but are still important….what are they called? You are HONING (think of sharpening a knife blade)

• ...many businesses claim today to be customer-centric, they still operate like they [...] can create a product, package it up, and sell it in the fashion most convenient for them — and expect consumers to eat it up. https://bit.ly/3TXSoQX

Segment three

• All of Tien Tzou’s Subscribed newsletter articles can be found at this link https://www.zuora.com/subscribed 

• Robbie Kellman Baxter (also a TSOE guest) possibly said it best: “A lot of boards and executives are now saying, ‘let’s get some subscription revenue,’ without thinking about why that would be good for the customer.” More here: https://www.zuora.com/subscribed/why-a-customer-centric-world-requires-a-demand-led-strategy/

• Regarding subscription: “We’re in a critical moment. There’s no time for frauds. This market is too competitive for any company posing as anything but one with a customer-centric and future-proof approach. This approach is not an option.” More here https://www.zuora.com/subscribed/why-a-customer-centric-world-requires-a-demand-led-strategy/  

• Is there room in the market for a high end, subscription only restaurant? Ron mentioned the French Laundry as a possibility but ultimately you are paying for access (which is the point!) 

• WFH is now Working From Helm — Virgin Voyages is now offering summer season passes for cruise ships https://www.virginvoyages.com/l/one-month-summer-mediterranean-cruise 

• Cruising not your thing? Instead, why don’t you subscribe to skiing with the IKON Pass? https://www.ikonpass.com/ 

Segment four

• Where can you find more work from Joe Pine and his book The Experience Economy? He’s working on his next book and is sharing his work in progress on Substack https://transformationsbook.substack.com/ 

• Rate this podcast at RateThisPodcast.com/TSOE. If you write a review we are happy to read it on the air - good, bad, or indifferent

• Geraldine Carter — a show sponsor and listener — is working on a new book called Down to 40 Hours. Watch her website closely for more info https://geraldinecarter.com/ 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits. 

Episode #482: Subscription-based legal services - Interview with Scott Reib

Ron and Ed are joined by Scott Reib who is known as “America’s Legal Coach.” For the last two decades, Scott is a firm believer that legal advice doesn’t have to be expensive or intimidating. His passion lies in changing the way we view legal counsel: from “emergency” situations to “primary care provider” relationships. Scott is shifting this perspective via Access Plan, his groundbreaking subscription-model legal service, where he helps clients understand their legal questions before they find themselves in a legal emergency.

About Scott Reib

Scott Reib (pronounced “Reeb”) is known as America’s Legal Coach. He’s the official Zig Ziglar Small Business Lawyer, a Ziglar Legacy Certified Trainer, and he has over 20 years of experience as an attorney. For the last two decades, Scott has been helping business owners, entrepreneurs, coaches, and service providers to “shatterproof” their businesses and succeed in the professional world.

Use these show notes to follow along with the audio:

Segment one

• Scott was in sales during the beginning of his career. He ran into a contract issue and “did what any sane person would do” - he went to law school.

• Scott had a vision in 2012 for a different way to practice law. An on demand system with a set monthly fee so that they could ask any question they want without worrying about the bill. The access plan was born https://www.reiblaw.com/access 

• Even though Scott didn’t have a partner in the firm that he “needed to convince” about a subscription billing plan, he did have stakeholders. Mistakes were made and lessons were learned around the idea that he could have communicated the subscription idea better

• People coming back to Scott that made a mistake they could have avoided was his motivation for moving to a subscription model. They thought they couldn’t afford him and didn't ask but ended paying large amounts to “win” in court.

Segment two

• Typically you call your lawyer when your house is on fire (so to speak). Scott wants to shift your thinking to a more proactive role as your lawyer.

• Scott had a mantra a few years ago that will resonate with many of us, “The billable hour is dead. Lawyers just don’t know it yet.”

• “Lawyers are paid not to finish if they are charging by the hour.” —a Verasage colleague

• One of Scott’s biggest advantages: In running a business you are constantly being presented with contracts to sign. You could be making a mistake and, with a subscription based lawyer, there is no additional fee to have a contract reviewed. 

Segment three

• Scott’s pricing model as a subscription law firm includes revenue ranges. That’s just a guide to help you understand where your business might fit. More here: https://www.reiblaw.com/access 

• I would rather apologize for the price today than for the lack of quality and your unhappiness forever.” —Zig Ziglar

• Our now! “The Shatterproof Entrepreneur: Building an Unbreakable Business Legacy” by Scott Reid with the forward written by Tom Ziglar https://www.amazon.com/Shatterproof-Entrepreneur-Building-Unbreakable-Business/dp/B0CWS84LVV 

• Ed referenced “swallowing the fish” today during the show. This link is a good refresher for those that have read the book, Subscribed… https://www.zuora.com/2020/01/23/swallowing-the-fish-a-short-term-reality-for-subscription-businesses/ 

Segment four

• What are some of Scott’s main KPIs as a subscription lawyer? New members each month, number of paused plans, cancellations, MRR, and projections for the year

• What are some of the technologies Scott uses to run a subscription law firm? Asana for project management, Zapier for connecting various platforms, Slack for internal comms, and Sync as a cloud server

• Is the first 90 days of a subscription business critical? Of course. Scott is focused on making sure that his law firm “WOWS” customers in the first 30 and 90 days. Re-education of customers around new processes is definitely a hurdle. 

Bonus Content is Available As Well

Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.

Click the “FANATIC” image to learn more about pricing and member benefits.