Review: The EMyth Enterprise

April 14, 2010 by
Filed under: Book Reviews 

“An e-myth enterprise is a business that takes personal responsibility for the condition of the world it finds itself in; for the condition of the people with whom it interacts; for the condition of their children and their children’s children; for the condition of the very quality of life itself.”

 

This is the second book I have read by Michael E. Gerber. I can say that reading his books makes me want to meet him and buy him dinner so that I could have some time to hear his thoughts on how I might do what I am doing better. He is very accomplished and as I read his words; I feel myself becoming hypnotized or mesmerized by his words and writing. The way he writes pulls you in, it entertains, it builds a picture, it brings feelings to the surface, it brings questions to the forefront. I have gone through the process of re-evaluating what I am doing based on what I have read within the pages of Michael’s books.

Michael is founder of E-Myth Worldwide. E-Myth Worldwide was created in 1977 as a coaching, training and education company. It is now in its 32nd year and has helped more than 65,000 businesses in over 145 countries. His program is used in 118 universities in the world. He has authored 13 business books and founded 11 new ventures in the last four years. Michael is writing from a place of experience and from a place of caring about us making it work so that we can make the world a better place.

In this book he describes what an E-Myth Enterprise is; the essential ingredients. There are four; the visual, emotional, functional, and financial. These four ingredients work together to create an exceptional business. The first thing to realize is that a business exists only as others observe it. A business can not be without employees, customers, suppliers and lenders and they all have perceptions. Their perceptions count and Michael explains that businesses need to step up and DO MORE. They need to be cognizant of these four distinct group of interactions – the employees, the customers, the suppliers and the lenders all play a large role in how successful the company will be. A business needs to understand that these four groups have essential needs, perceived preferences, and unconscious expectations and the business must DO MORE to satisfy these. They satisfy them by paying attention to the visual, emotional, functional and financial ingredients. They need to have 5 basic skills in order to satisfy these ideals.

  • Concentration: Provides energy and attention needed for the right action to take place.
  • Discrimination: Provides us with intention and standards that help us know which action needs to be taken.
  • Organization: Important to realize that people can not be organized; time, space and work are the things that can be organized. Organization provides room for the right action to take place.  Time is the utilization of energy; Space is having the right tools in place in the right quantity to support the right action; Work identifies the natural way to take action, and the relationships between functions and the coordination of action and functions.
  • Innovation: Is about effectiveness. Doing things faster, cheaper, smoother and softer. Watch the child – they do it all the time.
  • Communication: Channel through which life is conveyed. Ideas and the energy of ideas are transmitted and how mind, spirit and body converge into a force for the right action.

I loved how he describes the process of getting more life in a business. The process starts with the development of standards and that develops discipline which results in the development of patience which leads to development of vision, which gives insight, which inevitably leads to the development of conviction, which leads to awareness, where you can’t help but develop empathy, which obviously creates deeper and real relationships which – the ultimate end of having more life.

The ideals by which to create the E-myth Enterprise are the ingredients to a successful idea and business.

Visual: Our first impressions are made visually. It is important that a business pay attention to leaving a good first impression; customers, employees, suppliers and lenders will create a perception based on what they see of your business thereby affecting the resulting relationship. Pay attention to your logos, your colors, scale, order, and consistency. Ensure that information is being transmitted visually.

Emotional: It is important to connect to the emotional side of people, to leave a mark. People need order, to feel heard, connected to something bigger than themselves, a purpose, to feel that what they do has moral weight and is important and that people they associate with love them. In order to reach the emotional side of people it is important to always ask questions – be like a child. A child always challenges the boundaries and asks questions and they keep going. If they get a no or fall down, they keep going, they keep asking.

Functional: As I read on what the functional ideal is, it reminded me of what I learned in Emyth Revisited (LINK TO THIS POST). For a company to be functional it needs to act great and to act great it must think completely different about what it does and how it does what it does. They need to focus on processes rather than the people. If great processes are put together than you don’t need to hire (and pay for) the best. Analyze what employees, customers, suppliers and lenders want the business to do and whether it makes sense to try and incorporate that in the way the business operates. Try and find out the most frustrating thing to these key stakeholders and then see if you can guarantee that this most frustrating thing will not occur.

Financial: Michael insists that you do need to worry about money, that it isn’t all about doing what you love and letting the money come. He writes that money has no meaning without people, that you must take care of it because it will not take care of itself and he stresses that you must have integrity when it comes to money.

The final chapter of the book will challenge your thinking and will test your defensiveness. I found myself having to read this chapter a couple of times in order to really GET what he is working to say here. To me, what I feel he is trying to get across is that we have fallen into a trap because we often forget to think. Actually, really, truly THINK. We fall into doing things, wanting things, that are the newest trends or hot new tools to improve our lives. He gives advice on how to get out of this – he says that we need to

  • Admit to the fact that we have fallen into a programmed trap
  • Be more interested in far more than just business; we must be interested in the dignity of ones own life and those lives around us; must set very high standards;
  • Be interested in how things look and how things feel and how things work and then finally in the money.
  • Realize that the economic model is a myth
  • Pay attention to people; what is imprisoning them, what is frustrating them, what is inhibiting them, what is restraining them, what is depriving them of a rich forceful life.
  • Be conscious of oneself
  • Be honest with oneself
  • Continually watch oneself

I highly recommend reading this book; it will make you really think hard about what you are working to achieve in your endeavor.

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