Tag: Seymour Schulich

A Successful Businessperson Has to Learn to Say No

“The art of leadership is saying no, not yes. It’s very easy to say yes.” — Tony Blair

Tony Blair isn’t the only one who thinks that. So does Steve Jobs and Warren Buffett. Focus is everything.

One of the most evident signs of poor leadership is the inability to focus — it’s easy to say yes, and it’s very hard to say no.

Seymour Schulich elaborates on this in Get Smarter: Life and Business Lessons:

This piece of wisdom was instilled in me many years ago by Joe Rotman, an entrepreneur who is the benefactor of the Rotman School of Business at the University of Toronto. Many years ago, prior to the philanthropic work that made him famous, I arranged for a meeting so that I could gather the insight of an astute businessman who’d built a fortune in the resource business, primarily through oil and gas production.

“Every successful businessperson has to learn how to say no,” he told me that day. If you spend your life in business, you will see dozens or perhaps hundreds of potential deals. A small number will be highly attractive; most will be average or below average. The path to superior results is to accept only the best ideas — indeed, no venture capitalist or merchant banker could survive for very long without saying no to 90 per cent (or more) of the pitches he sees.

You can be diplomatic, firm, or a combination of the two, but you must be comfortable with the idea of handing out rejection. Rotman’s lesson became rooted deeply in my consciousness and caused me to be much less wimpy about turning down venture capital deals, start-up companies, and charities.

It’s not so much what you do but rather what you don’t do that matters.

Follow your curiosity to eight ways to say no with grace and style.

Seymour Schulich on Deals, Business, Decisions and Life

Seymour Schulich tyc

Seymour Schulich, one of Canada’s most successful businessmen and author of Get Smarter: Life and Business Lessons offers some indispensable business wisdom.

  1. Business is a means to an end not an end in itself. Nobody on his or her deathbed says, “I wish I had spent more time in the office.”
  2. Never quit a job unless you have another job. My father taught me this great truth. You are perceived as more valuable if you are working than if you’re unemployed. You may feel staying employed doesn’t give you the time or latitude to seek a better job. This is a dangerous delusion—don’t succumb to it.
  3. Always ask the question “If this decision is wrong, is it going to be painful or fatal?” Company builders and business leaders keep away from “bet the company” investments.
  4. Keep away from advisors/consultants. If they knew how to make money, they would. These folks are like the fellow who knows a thousand ways to make love but doesn’t know any women.
  5. The best test of a deal’s true attraction is to ask your partners, employees, directors, family, and so on, “Would you put your own money in this deal?” It’s amazing how often the answer to this question is, “No! This is good for the company, but I’ll take a pass.” These deals are invariably losers.
  6. Always have at least two people from your side present at any negotiating or deal-making sessions. This gives you time to think, plus an ally with whom to compare perceptions.
  7. Never confront or threaten people or institutions who have more power than you. Examples: police, customs agents, the sec, Ontario Securities Commission, tax agents of the government, or politicians.
  8. In dealing with the media, never forget to qualify your statements with “not for attribution” and “off the record” where appropriate. Journalists value their contacts and will usually respect a source’s desires.
  9. In negotiations, always try to get the other party to name its asking price. It may often be far lower than your maximum offer. If the other party won’t name a price, start very low. You can always go up.
  10. Almost everything in life is easier to get into than get out of.
  11. Never bid against yourself. Only raise your bid to top a real counter bid, not an imaginary one.

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A Simple Way to Improve the Pro-Con List to Make Better Decisions

Seymour Schulich

The first chapter in Seymour Schulich‘s book, Get Smarter: Life and Business Lessons, offers a decision tool that adds to the simple pro-and-con list that many of us have used to make decisions. Schulich, a self-made billionaire, is one of Canada’s richest and best-known businessmen.

I learned this tool in a practical mathematics course more than fifty years ago and have used it for virtually every major decision of my adult life. It has never let me down and it will serve you well, too.

You all know the simple pro-and-con list? The one where you divide the page in two and simply list out all the pros and cons. Well, the Decision-Maker adds a twist to that. Here’s how it works.

On one sheet of paper, list all the positive things you can about the issue in question, then give each one a score from zero to ten—the higher the score, the more important it is to you.

On another sheet, list the negative points, and score them from zero to ten—only this time, ten means it’s a major drawback. Suppose you are thinking of buying a house, and you tour one that’s in your price range, except the owners have painted every room to look like a giant banana. If you really hate yellow and can’t stand the thought of lifting a paint brush, you might give “ugly yellow house” a ten, and if it’s not that big a deal, maybe a two or a three.

Now add up the scores. But here’s the rule.

If the positive score is at least double the negative score, you should do it—whatever “it” is. But if the positives don’t outweigh the negatives by that two-to-one ratio, don’t do it, or at least think twice about it.

Yes that sounds simple. I agree. But I also don’t think that things need to be complicated in order to be effective.

The Decision-Maker is designed not to allow one or two factors to sway a major life decision in a disproportionate way. It forces you to strip away the emotion and really examine the relative importance of each point—which, of course, is why it works so well.

This tool works for groups too.

When we were considering whether to sell our royalty company, Franco-Nevada, to Newmont Mining, Franco’s executive team produced a collective Decision-Maker. We listed all the pros and cons, then the top four executives assigned their own point scores to each. We averaged them, the positives far outweighed the negatives, and we sold the company.