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Systems Thinking: How Billionaires Think

Sam Ovens · 7,016 words · 32 min read

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0:00everyone seemed Urban's here and today I

0:03want to tell you about systems thinking

0:05and how most successful people think now

0:10Systems thinking is something that you

0:12know has fascinated me for a long time

0:15and I've always been looking at you know

0:17some people who are really successful

0:19like entrepreneurs but even employees

0:21and people who you know are really good

0:23at anything and I've been trying to

0:25think you know what really separates

0:27them why are they different how come

0:30they can see things that that other

0:31people can't and what goes on in their

0:34brain like how do they think differently

0:37than normal people and this thing has

0:39fascinated me for a long time and I've

0:42really tried to study it and you know

0:45it's even become a point of obsession

0:47where I've been trying to figure it out

0:48and after a long time after years you

0:52know I figured out that most successful

0:54people it doesn't matter what field

0:55they're in their systems thinkers and

0:58what that means is they view everything

1:01as a system and how they think through

1:04things and how they visualize things in

1:06their mind is interconnected systems not

1:10linear

1:11like you know chain of cause and effect

1:14and I'm gonna explain this to you in

1:16this video and I'm gonna show you you

1:18know how as systems thinker thinks I'm

1:20gonna show you how you can become a

1:22systems thinker and how this has an

1:25immediate and profound effect on the

1:27results that you'll get in your business

1:28and in your life so first of all like

1:32what is assistant and what is systems

1:35thinking well it doesn't matter where

1:38you look in the world like the world is

1:39full of systems they're everywhere and

1:42I'll give you some examples like we have

1:45the solar system all right that's what

1:48it's called and it's called a solar

1:49system because there's all of these

1:51different planets and they all you know

1:53rotate around each other and all of them

1:55affect how like what happens with other

1:57things it's all interconnected and the

1:59solar system is basically moving it's

2:01interactive and it's trying to balance

2:03all the time all right and then within a

2:06solar system we have like earth and

2:09in with an earth we have an ecosystem

2:12all right that's what nature is and the

2:16ecosystem is what we all live in

2:17you know there's trees that produce

2:19oxygen and to do that they need water

2:22which comes from rain and clouds and

2:24also the Sun which you know which

2:26provides which heats the earth and then

2:29the the water evaporates rises up forms

2:32clouds drops down and you know it's a

2:35fascinating thing to look at because one

2:37of the best systems in the world well

2:39actually this is hands-down the best

2:41system ever is nature you know and if

2:45you think about it like nature it is

2:47it's smarter than any one of us on earth

2:51by a mile like we cannot figure it out

2:54we still can't predict the weather and

2:56you know we still can't really predict

2:58anything but nature is it continues to

3:02outsmart us all the time and what nature

3:05is doing is it's it's all interconnected

3:08right you've got like the Sun and that's

3:10interconnected by heating water that's

3:13like in rivers and in the oceans on

3:15earth and then that's evaporating it's

3:17coming in and forming clouds and then

3:19the clouds are moving around with wind

3:21and they're spreading rain into

3:23different areas areas which might need

3:25water and it's the Sun is taking that

3:27water out of other areas that that have

3:31a lot of water so you know nature is

3:32trying to balance itself all the time

3:34and even some things that you know we

3:37think we humans think are bad for a

3:40classic example is like forest fires

3:42right like it's fascinating a lot of

3:46humans will most humans always thought

3:48you know forest fires are bad and so

3:51what they did is they decided to put an

3:53initiative in place to try and stop

3:56forest fires all together and then what

4:00happened as they thought they were

4:01successful because they were able to

4:03stop some forest fires for a long time

4:05but then what happened is one big gnarly

4:07forest fire just swept through and just

4:09annihilated everything and then in

4:11hindsight they realized that those small

4:14bush fires that happen all the time

4:16that's Nature's Way of getting rid of

4:19the debris that's on the forest floor

4:22so that it never piles up too high and

4:24that it burns off and it causes small

4:28fires and small fires are actually a lot

4:30better than one big catastrophic fire

4:32right and so by preventing those fires

4:35they actually caused a bigger one and

4:36this is a classic example of you know

4:40why nature is a lot more intelligent

4:42than their nice humans and it's the

4:44ultimate system and you know it goes

4:47further than that there's you know if

4:50you if you think into society and

4:52different humans and they're

4:54interconnecting you know we've got

4:55social systems we've got a legal system

4:57you know that the legal system is

4:59different laws and how all of those laws

5:01interconnect social systems you know

5:04those are different social norms and

5:06we've got systems for operating you know

5:08if a human wants to interact in in

5:11society they it's very hard for them to

5:14just make everything up and go out there

5:16and say and do whatever the hell they

5:17want they won't be able to communicate

5:19with other people they won't be accepted

5:21and you know they won't really be able

5:23to integrate with the social system API

5:25because they don't know the protocols to

5:28to call into that thing and communicate

5:30things and so you know we have to learn

5:32all of these different systems in order

5:34to operate within the system and as you

5:36start going deeper into this thing you

5:38realize that everything is really a

5:40system we've got a language system we've

5:43got a numbering system you know when

5:45we're educated we learn the number

5:47system which is just very simple numbers

5:50and then we learn how to you know we

5:53learn a language like English or Chinese

5:55or whatever and the languages are just

5:57built up of words and the

5:58interconnections of those words and

5:59numbers are just made up of numbers and

6:01the interconnection of those numbers

6:02creates the system so we learn these

6:05elementary building blocks that then can

6:07be used to interconnect and communicate

6:10and do all of these things and without

6:12knowing the number system or without

6:15knowing a language system and without

6:18knowing the legal system or the social

6:19system then a human being cannot operate

6:22in this world the way it is right now so

6:25you start to get my point and then it

6:28goes you know even deeper like here's

6:30all the

6:31and even all of the systems within your

6:33body you know you've got your immune

6:35system your cardiovascular system your

6:38respiratory system your digestive system

6:40and then you've got your reproductive

6:42system and then your muscular system

6:45your sensory system your nervous system

6:47right it goes on and on and it there's

6:50systems within systems and when you

6:52really start to look you you realize

6:54that all life really is is all of these

6:57different systems at all different

6:58levels and all of them interconnect now

7:01why am I talking about all of this and

7:04how does this actually help you in

7:05business well business is you know a

7:08system again you know we've got an

7:10accounting system to try and figure out

7:12you know if we're making a profit or a

7:13loss we have you know all sorts of

7:16online systems

7:17right there's Google there's Facebook

7:20there's you know in if you're going to

7:22use a software like if you're going to

7:24use a landing page software like

7:25clickfunnels that's a system you've got

7:27to learn that system and how what its

7:29components are and how those components

7:30interconnect and what I've found is that

7:34the people who do really well as

7:36entrepreneurs and really well in life as

7:40well and our best hires you know the

7:43people that are just exceptional they're

7:46all systems thinkers and why that's

7:49important is these days I see a lot of

7:51people who are not systems thinkers and

7:54what's the opposite of a systems thinker

7:56well it's really like a component

7:59thinker right and what that means is

8:02that instead of viewing the whole and

8:04how the whole has all of these moving

8:06parts and how all these moving parts

8:07interconnect they just see a piece and

8:10they just see this piece frozen in time

8:13like it's static and you know all they

8:16know is this piece but they don't know

8:18how this piece fits into a larger whole

8:21and changes and affects other things

8:23within the whole right and in business

8:26like the piece is never important what

8:29what is important is the whole in the

8:31well-being of the whole and the whole is

8:33the business right so a classic example

8:35of this you know might be so might be an

8:38accountant right and this is true this

8:41is this is like accountants a notorious

8:43for this

8:44a lot of accountants they're so

8:46closed-minded and narrow-minded that all

8:49they can see and think about is just

8:51like the P&L and balance sheet that

8:54that's all they see and they're just

8:56confined to thinking about things as

8:57accounting so they might look at our

9:00expenses for Facebook ads and be like oh

9:03my god this is this is stupid why are

9:06you spending this much money on Facebook

9:07ads like why are you spending millions

9:09of dollars on it this is a waste this is

9:11an expense and what that accountant

9:14can't see is that you know when we spend

9:16money on ads we actually that's the

9:18action right which is an expense but

9:20then the reaction of that action is that

9:22we make a profit now that's not always

9:25true you that's that doesn't mean that

9:27if anyone's Ben's money on ads they're

9:28gonna make a profit but we do it in a

9:30way that does that and so you know you

9:32have to take your time to explain it to

9:34these people and they still really can't

9:36get it and I'm like man what the hell is

9:38wrong with this person like if I put

9:40$1.00 in drum machine and $3 comes out

9:43why would I limit my putting of dollars

9:48into the machine

9:49all right that's wouldn't accountant

9:50thinks you should do well that's what a

9:52bad one things you should do right

9:54because they can't see the bigger

9:55picture they can't see how all of these

9:57things interconnect so they just see

9:59expenses as bad and they can't see how

10:03an expense can actually create income

10:05and their component thinkers you know

10:08that they can only see their little

10:10thing and another example of this is

10:14basically you know a lot of employees

10:17who were just narrow-minded in their

10:19little area so you might have someone in

10:21customer support who you know who was

10:24who is answering support tickets in a

10:26particular way and doing things in a

10:28particular way not to not thinking about

10:31how that's going to affect the larger

10:32whole and you know they might think oh

10:34if I do this then it might come back and

10:36effect finance or it might come back and

10:38effect you know our live chat web site

10:40team or it might affect you know another

10:42team right they don't think about how

10:44all of these things interconnect they

10:46just think things operate in isolation

10:50and you know a lot of people think like

10:53this they think that everything operates

10:56in a vacuum

10:56and I see this a classic example in

10:59marketing is people who just focus on

11:01the landing page conversion range all

11:03right they look at the landing page and

11:05they see a conversion rate and they see

11:07a cost per lead which is a cost per

11:09email address and let's say that that

11:11number is 15% opt-in rate and they might

11:13think oh that's bad

11:14so then what they do is they start and

11:17they start making changes to that

11:19landing page and they get it from 15% to

11:2230% or 40% and they're like oh that's

11:24good I improve that conversion rate

11:26there but that's a component thinkers

11:29view all right what a systems thinker

11:32would do is they would look at the whole

11:34they would look at the health of the

11:36whole not the part and so instead of

11:38thinking about a landing page they would

11:40think about the entire machine and where

11:44does that machine end what's the

11:45ultimate measurement and within this

11:47machine well it's getting a customer and

11:49cost per acquisition and ROI return on

11:52investment all right

11:53and so when a systems thinker makes

11:56changes to the landing page they're not

11:58so worried about the landing page

11:59conversion rate they're worried about

12:01the change to the cost per acquisition

12:03in the our way and this is how I do

12:06things like we know I'm optimizing my

12:08landing page I've taken it from my 18%

12:11to 40% and I've actually hurt sales at

12:15the end and a lot of people don't

12:17understand that you can do this you know

12:18you can get an improvement here and

12:20Kittel everything here where it matters

12:23so where it doesn't matter you can make

12:24an improvement where it really matters

12:25you can hurt it it is more than possible

12:28and I see this all the time where these

12:30things actually go opposite ways at

12:32different stages in the machine and only

12:35really as systems think it can can do

12:37this another classic example is a lot of

12:40entrepreneurs I see who just have really

12:43shitty like customer support you know

12:46they they think that customer support is

12:49is not worth anything to a customer they

12:52think that you know that part of the

12:54business they should just farm out to

12:56you know to some people overseas for

12:59like you know $500 a month for them to

13:02just do and figure it out and it's an

13:04afterthought right because all their

13:07money they think should be

13:08into marketing and other things because

13:11support doesn't influence income that's

13:14how a that's how a component think it

13:17would would think but a systems thinker

13:19would would think hey if a customer bias

13:22from us and then they have a question

13:24and if we answer that question in poorly

13:27or late or you know if it's not done

13:31professionally and well if it doesn't

13:33well with a customer then how is that

13:35customer going to feel probably pretty

13:37bad and then if we sell something else

13:40which we're highly likely to do then

13:43they're less likely to buy something

13:44else from us in the future so actually

13:48we're harming ourselves by offering

13:49shitty support we're actually going to

13:51make less money by doing that that's

13:54what a systems think of a thing and so

13:56that's why you know with with my team

13:58we've got like we've got well paid well

14:01trained full time like us based like

14:04people doing our customer support and I

14:06obsess over it you know I try I look at

14:08all of the numbers I look at our

14:10happiness score which is how happy

14:11people are and that is you know I looked

14:15at the standards across the board and

14:17like Google and and a lot of companies

14:19that are really good at this they've got

14:20their satisfaction score like ninety to

14:22happiness right and we've been able to

14:25get ours to about eighty seven and

14:26that's pretty damn good and we're you

14:29know my mission is to get it better than

14:31Google's right and we're doing that

14:32we're making it better every day and

14:33that's actually had an effect on

14:35ourselves we make more money because our

14:38supports better because when a customer

14:40has an amazing experience and when

14:43they've dealt with other businesses like

14:44ours they've had a horrible one then who

14:47are they more likely to buy from next

14:48time around it's a no-brainer but only

14:51when you think like a systems thinker

14:52and also we obsess over the response

14:56time how fast from when someone submits

14:58a ticket to win we reply you know right

15:00now we're at like two hours or two and a

15:01half hours and I want to get that down

15:03you know my missions to get there to

15:05like six minutes right because I want it

15:07not to just be good enough I want it to

15:09be exceptional to the point they're our

15:11support becomes a marketing and sales

15:13tool in and of itself their systems

15:16thinking everything can be used to do

15:19anything because at all interconnects

15:21all right now I want to show you how a

15:26system basically works first and

15:27foremost because it's pretty simple and

15:31everything in the world works like this

15:32so you've got inputs over here and input

15:38so what you put into a system and then

15:40you've got processes in the middle of

15:43the triangle and the processes alike you

15:46know what happens with those inputs it's

15:48it's like you know it's how you're

15:51manipulating and combining and changing

15:54those inputs to produce something and

15:56then you've got on the other side the

15:59outputs and that's all really a system

16:02has inputs processes and outputs but

16:05then there's something that influences a

16:07system and that's the environment

16:09there's the Sun up here because like I

16:12said nothing works in a vacuum you know

16:15like when you're building out when

16:18you're doing anything like it's not like

16:20it's not it's not like it's not affected

16:24by something else

16:25everything is always running in a vacuum

16:27and a classic example of this is like

16:30you know your imagine you as a human and

16:34you've got your you know your you've got

16:37a your system a human is basically a

16:39system right you got all of these

16:41different components within you and then

16:43you've got all of the interconnections

16:45between all of them now if you want an

16:48output out of yourself which is good

16:50like if you want to be happy and if you

16:52want to perform well and do good work

16:54and be focused and all of that then if

16:58that's the output that you want then the

16:59inputs matter you know if you if you

17:02don't sleep properly then your output

17:05isn't going to be very good because

17:07sleepers are really important input if

17:09your food isn't good then your output

17:11isn't going to be very good and just to

17:13show you how input sexually affect

17:15outputs just try having like 20 beers as

17:18an input right just try to drink 20 of

17:21those and then see how see how sharp you

17:23are all right you you won't be so that's

17:26just right there that shows you that

17:28what goes in affects what comes out

17:31there's the saying you know with systems

17:34garbage in garbage out you know what

17:36what we put in is often what we get out

17:39and then we've got the environment which

17:42affects us too and humans are really

17:45influenced by our environment you know

17:47one of the largest influences of our

17:50happiness and things is the weather and

17:52you know if it's sunny

17:54we're statistically more likely to be

17:57happy just if it's sunny and if you

18:00don't believe me on this one then look

18:02at the most depressed countries in the

18:06world and it'll be those ones over like

18:08Greenland Iceland where they don't have

18:11any daylight for basically all that like

18:13most of the year right and then if you

18:15look at the some of the happiest places

18:17then you'll notice that it's it's places

18:20with really good with it all right

18:21and there's even a trader called like

18:24Paul Tudor Jones who who even has

18:26developed a stock trading algorithm that

18:29basically looks at with the patterns and

18:32humans reactions - with the patterns and

18:34at trade stocks based on that because

18:37peat humans are more likely to feel good

18:41and make optimistic bits winners sunny

18:46you know we think we're logical but

18:48we're affected by the Sun that changed

18:51the sale decisions alright and so we've

18:53got inputs outputs processes we've got

18:57our environment and then we have

18:58feedback and what feedback is is you

19:02know outputs actually affect inputs all

19:04right so all of this stuff is

19:07interconnected and a classic example of

19:09this is you know if you have just think

19:14about a crowd forming right so if you're

19:17if there's like a some sort of dance

19:20party or music event or something like

19:23that and let's say that no one is

19:26dancing in it's just an empty field then

19:29one person goes in and starts dancing

19:31that one person is going to be by

19:33himself for a while but then is another

19:35person comes in then people slowly start

19:38coming in faster and faster because the

19:40crowds now forming and then

19:42as soon as a lot of people start running

19:44in a lot more people start running and

19:45then a lot more people start running in

19:47and it grows exponentially and this is a

19:50classic example about how outputs come

19:53back and provide feedback to inputs

19:55alright and this happens the same way on

19:58the way back down you know if a lot of

20:01people start leaving like a dance dance

20:04circle or whatever the hell you call

20:06those things then a lot more people

20:08start leaving right and it it decreases

20:10just as fast as it is it increases and

20:14that's basically how it works now you

20:17know one thing this this operates

20:19everywhere this is what we call a

20:20feedback loop when you know when the

20:23output of something directly affects the

20:25input of something and a classic example

20:27of this is you know the stock market in

20:30stocks so the biggest influence on a

20:32price of a stock is the price of a stock

20:35so if a stock price is going up quite

20:37fast then that's going to influence more

20:41people to think oh this is good and in

20:43the people who put their money and

20:44they're gonna be like oh this this

20:46wasn't the right decision so they might

20:48put more in and tell more people and

20:49then you get you get your bubble you get

20:51your Bitcoin you know sort of event

20:54because of the feedback and so that's

20:58basically how systems work and so you

21:00don't have to be like an Einstein or a

21:03NASA space scientist to really become a

21:06systems thinker

21:07all you do is you just think about

21:09inputs outputs processes feedback

21:13environment so you want to think in your

21:16you know it yourself like if you want

21:19what outputs do you want out of yourself

21:21you want to do really good work do want

21:22to be healthy and fit well then you need

21:24to have good inputs you need to be good

21:26you need to eat good food you need to

21:27sleep and more than the physical things

21:30you need to put good you know good

21:33information into your brain you know if

21:35you if you don't ever read anything or

21:38watch anything or consume any form of

21:41information it is impossible for you to

21:44know anything all right we don't we're

21:46not just born knowing stuff we don't

21:49know anything when we're born other than

21:51some survival instincts which you know

21:54Pro

21:54into us from you know our evolution but

21:58the that's really it if we want to learn

22:01something we have to have inputs so you

22:04know smart people will often read books

22:06that's how they learn and then they'll

22:08often watch good sources of information

22:10you know they won't be watching the news

22:13and they won't be reading the newspaper

22:14and they won't be you know watching like

22:19Game of Thrones and binge watching

22:20Netflix because that's that it doesn't

22:23really teach you anything right but

22:25instead they'll be reading books and

22:27they will be doing experiments and

22:30learning and that'll be the input into

22:34their brain and then obviously the

22:35output is knowledge right so it doesn't

22:38matter where you look everything is this

22:41simple if you want to be healthy eat

22:43well sleep well drink water exercise

22:45those are the inputs the outputs are

22:47health right if you want to be

22:50knowledgeable or smart it's something

22:52read good books practice learn put those

22:56inputs in intelligence is the output and

22:58then if you want you know if you want to

23:02grow a business well then you've got to

23:04think like what are the inputs processes

23:06and outputs right and this is basically

23:11what I broke my business down to I

23:12realized inputs are basically is web

23:16traffic so people becoming aware of what

23:18we're doing right those are the inputs

23:20traffic number of human eyeballs coming

23:23through on the internet that's the input

23:26what is the process well that would be

23:28like right now it's my automated webinar

23:31so webinar that shows people the

23:33presentation explains what it's all

23:34about and sees if they're interested

23:36what is the output well it's like a

23:40customer someone signs up or not all

23:43right and then what's the environment

23:47well the environment is you know this

23:50changing PPC prices like the chain sorry

23:53the CPC prices so you know those move up

23:57and down and these are also competition

24:00you know if someone comes in and they're

24:02doing something better then that man

24:04he changes the environment right so this

24:07doesn't just run an isolation in a

24:09vacuum it is affected by a lot of other

24:11things and so a good a good systems

24:13thinker will first and foremost create a

24:16basic elementary system we have got

24:18inputs processes and outputs and they

24:20will test it at a small scale to make

24:22sure that it delivers the desirable

24:24outputs what is that well it's customers

24:26at a profit so if I spend a grand do I

24:28make like more than one grant do I want

24:30to make at least like two grand so if I

24:32put a thousand in and I get a bunch of

24:34clicks coming through and do I make more

24:36on the output if that is true at a small

24:39scale then it should be true at a lab

24:42scale and then we just keep scaling it

24:43up until we get you know to more than

24:45one hundred and twenty thousand a day

24:46all right it's as simple as that we

24:49don't you know we don't do some weird

24:52magic to just scale it up it has to be

24:55inputs it has to be an increase in

24:57inputs to move that thing up there is no

25:00magic magic has only things that people

25:02cannot understand right and this is what

25:05it is

25:05there's also feedback that comes from

25:08that you know if someone comes through

25:10our program and gets good results then

25:12they will tell people about the results

25:16and then more people are likely to buy

25:17my program because it's been getting

25:20people good results and then when they

25:23tell more people and more people join in

25:25that's more people who are likely to

25:26have good results and so when they're

25:28when they have better results they tell

25:30more people and you see what happens

25:32here we have a crowd forming sort of

25:35phenomenon but the environment is also

25:37playing a part you know we we have to

25:40watch what's going on with the internet

25:43and with CPC prices different channels

25:47different competitors different

25:49strategies right all of these things are

25:51influencing it and that's basically you

25:55know how I view my business and in every

26:00different part within the business and

26:01it's how I view myself it's how I view

26:03everything and I've been doing it for

26:06basically my whole life but I didn't

26:07really know what it was and I couldn't

26:09put a name in a word to it in its

26:11systems thinking now you're probably

26:14thinking

26:15all right I kind of get this but right

26:18now I want to make it really clear to

26:19you just the main tools in the main

26:22points of difference between you know a

26:24normal person and a systems thinker so

26:27here we've got tools alright so the

26:30first thing is disconnection and

26:33interconnectedness right top left and a

26:38normal person thinks with you know

26:40disconnection so they're thinking that

26:42everything is different and it's not

26:44interconnected so my customer support

26:46team has no effect on my sales all right

26:49and my marketing has no effect on my

26:51customer support and my customer support

26:53and my marketing have no effect on my

26:57finances all right there's me pretty

27:00messed up there's honestly how they

27:02think that's like you know that's like

27:04doctors who treat a specific symptom

27:08without understanding how that's gonna

27:11affect other systems within your body

27:14right and then we have you know the next

27:19one across is so good good systems

27:22thinkers always see that everything is

27:24interconnected there is no such thing

27:26that isn't connected to something else

27:28it is through multiple different

27:30dimensions everything is connected right

27:33and then linear versus circular so you

27:38know normal people they think that

27:41everything happens linearly and what I

27:45mean by that is that like an event

27:48happens now that affects like an event

27:50that happens there and then that affects

27:52an event that happens there but what

27:54they don't understand is that there's

27:56normal really happens otherwise how does

27:59a crowd form exponentially how do stock

28:03prices grow exponentially how do we get

28:06any form of exponential behavior when

28:09things happen in linear cause-and-effect

28:14chains right it's impossible the only

28:17reason why you know a crowd forms faster

28:21and faster and faster is because the

28:23more people that are joining influences

28:27the more

28:28that are joining and like I see it one

28:29of the biggest influences of the price

28:31of a stock is the price of a stock and

28:33if it's going up it's more likely to

28:35keep going up and if it's going down

28:36it's more likely to keep going down all

28:38right and so that happens because

28:40there's a feedback loop and the things

28:42happen in a circular sort of way not in

28:46a straight line not in a linear sort of

28:48way so that's important to understand

28:50and then you know the the next tool is

28:56silos versus like emergence so you know

29:02normal people think that everything

29:04happens like in a silo and they like to

29:07really trap everything down and bolt

29:09everything down and force things to

29:12happen the way that they wanted them to

29:14and only that way now let me give you an

29:19idea of this it's this is a tougher one

29:22to understand but when you really

29:24understand it it will help you in a big

29:27big way so emergence is basically

29:31letting the merchants basically as

29:33complex behavior that arises from simple

29:35rules and so if we look at like the

29:40formation of birds when they're flying

29:41it looks very very complex and like a

29:46form of art right and we probably would

29:48be we probably think there's something

29:50very sophisticated going on there but

29:52really it could just be a very simple

29:53rule that the birds have which is don't

29:56collide all right and based on that

30:00simple rule we get this amazing pattern

30:02and behavior in the formation of a bird

30:04and in the formation of a flock of birds

30:07and the same happens in business all the

30:10time like you don't need to control

30:14everything you can just set some simple

30:17rules and in their emergence happen and

30:19a perfect example of this in my business

30:22is we don't tell people you know what

30:26niche to pick we we did this before back

30:29when I didn't understand things so well

30:31you know I used to tell people these are

30:33the top 12 niches in the world I don't

30:36know who I think I was to be able to

30:37make a claim like that that I

30:39we know that which nobody can know it's

30:42anyone who claims that they know the top

30:44niches in the world is they don't

30:47understand how life in the world works

30:50and the reason why is because I'll give

30:56you an example of this and this is

30:57fascinating when I was at school you

31:02know a lot of this the social norms and

31:05what what society had kind of tended to

31:08believe is that trades and being a

31:12plumber or a carpenter or builder or an

31:15electrician you know they started to

31:17believe that doing these things is is

31:20not considered successful you know they

31:23were they were like these things became

31:24frowned upon and if you really wanted to

31:27be successful you are you going to be a

31:28doctor or an accountant or a lawyer

31:29these people are good worthy people

31:32these people are not good all right

31:34which is kind of messed up so you know a

31:37lot of parents would say that to the

31:39kids and you know a lot so then what

31:42happens right and they they probably

31:45thought that at that time this is how

31:47people don't understand systems thinking

31:49at that time doctors and lawyers and

31:51accountants probably made more money

31:52than trades people so they were like oh

31:55okay well then we should tell everybody

31:57to do these things because they

31:58obviously make more money and if they do

32:01these things then they will be more

32:03successful than these and so it doesn't

32:07nothing works there's some that's simple

32:09right so then they tell everyone to do

32:10these things people stopped going and

32:12and starting these sorts of trades then

32:16what happens with time is that we end up

32:18in a market where there's too many

32:21lawyers and accountants and not enough

32:25trades people and so back home in New

32:27Zealand this is happening right now I

32:29know this well because I've got friends

32:30that are accountants and lawyers and I

32:31also have friends that trades people a

32:34my dad was a builder so he knows this

32:37well too and right now in New Zealand

32:40carpenters and builders and plumbers and

32:42electricians make more money than

32:44accountants and lawyers but not this is

32:47this is the way it is and not just a

32:49little bit but a lot more

32:50so right now like if you work for the

32:53top law firm and you've got like

32:55first-class honours and more and all of

32:57the stuff and then you go get a job at a

32:58law firm right and then you're gonna

33:01make less money than if you're just a

33:03carpenter or a plumber or an electrician

33:05and so the tables have turned right and

33:10this is because people didn't know how

33:12to think like if you skew the evolution

33:15of something like that it's going to

33:16change right and that's what happened

33:19and my point with this is you know a lot

33:22of people don't understand when they're

33:24teaching a course and telling people

33:25what to do if they tell people to all do

33:28one thing then as soon as everyone is

33:30doing that one thing then it stops

33:32working because the only reason why it

33:35was working in the first place was

33:36probably because there wasn't a lot of

33:38people doing it so now that a lot of

33:40people are it loses its edge now it

33:42doesn't work as well and now the whole

33:44business blows up and the tactic and

33:47strategy is no longer useful all right

33:49same thing with niches if I find at a

33:52point in time that the best thing to do

33:53is helping dentists with Facebook ads

33:56then that might be true right now in a

33:59moment in time in time but if now I

34:00teach 10,000 people to do Facebook ads

34:03for dentists it's not the same anymore

34:06it's the same phenomenon we saw with the

34:09doctors lawyers accountants and in the

34:11trades people right so as soon as I

34:13started to learn this which was years

34:16ago I stopped telling people what niche

34:19to pick because I didn't know anyway and

34:22I know that the best the best form or

34:25the best niche to pick is something that

34:26is unique to you individually and as

34:29soon as I started doing this people came

34:32up with the most amazing niche ideas

34:34which I've never seen before in my

34:35entire life people started doing porn

34:37addiction consulting let hunter odors

34:39and when he did this he was way more

34:42successful we've got people who do

34:44consulting on irritable bowel syndrome

34:46we've got people who consult on like

34:50family crisis intervention we've got

34:52people who consult on you know losing

34:56weight and in in all of these different

34:58unique things that I would have never

35:00thought of that

35:01they've turned out to be extremely

35:03profitable for for all of these

35:05different people and it's because

35:06they're unique and it's because there is

35:08emergence happening and what happens is

35:10when you stop siloing things you know

35:13siloing is telling everyone that they

35:16should all do Facebook ads for dentists

35:19siloing is telling everyone that they

35:20should do you know law or accounting

35:24right emergence is letting things evolve

35:29for themselves and creating diversity

35:33and you know really letting things

35:35flower and that's a huge strategy and

35:38tactic that I've executed in my company

35:40that's helped us get to where we are

35:42today by removing the siloing letting

35:45emergence happen another one is parts

35:49and holes so like I told you it's like

35:51the the typical business owner who

35:55thinks customer support doesn't affect

35:57the whole it's just something that

35:59should be farmed out to somewhere for

36:00cheap it doesn't every part affects the

36:03whole alright and quite often the whole

36:06is only as good as its worst part so

36:09doesn't matter how good any like all

36:11these other things are if one parts

36:13rotten the whole is rotten alright it's

36:16all about having you know the whole

36:20operating the best I can and then we

36:23have analysis and synthesis so you know

36:27analysts that just a few one the core

36:29component without viewing the entire

36:34interconnectedness of all of the

36:36components they're not very good

36:38analysts a perfect example of that is

36:40the person who looks at their landing

36:42page and thinks that by improving their

36:44landing page conversion rate that

36:45they're improving their whole business

36:47not true

36:48I've seen that the opposite is true a

36:51lot of the time so that's an example you

36:54know I can view the whole in the

36:56synthesis instead of just individual

36:59component analysis and then isolation

37:02and relationships so you know a lot of

37:05people think that things just happen in

37:09a vacuum but the systems thinker will

37:11understand that everything is

37:13interconnect

37:14and everything has relationships with

37:16other things for example my mood is

37:20affected by the weather alright so if

37:23there's sunny I'm gonna be happier

37:24that's like a fact and then if I'm

37:27happier I'm gonna do a bit of work right

37:29and then if I do a bit of work then

37:32we're gonna make more money and help

37:34more people so if we trace that back the

37:37weather is actually quite important

37:39right so is my food

37:42so as my diet so as my exercise if these

37:44inputs are off my mood isn't very good

37:47if my mood isn't very good I don't do

37:49very good work if I don't do very good

37:51work I don't help my customers if I

37:52don't help my customers they don't make

37:53much money so all of this is

37:55interconnected you can start to see what

37:57I'm saying here right so some action

38:00steps for you to take how do you become

38:03a systems thinker well you want to start

38:06thinking of things like this I recommend

38:08that you take a screenshot of this thing

38:11actually I'll include a PDF of this

38:13beneath this video for download so just

38:15go to but beneath this video find this

38:17link grab the PDF printed out put on

38:20your wall learn to see everything as a

38:22system and learn to see what what are

38:24the input if you're analyzing anything

38:26or trying to troubleshoot or diagnose

38:28anything or fix it make it better just

38:30ask yourself what are the inputs what's

38:32the processes and then what are the

38:34outputs is their feedback present if so

38:36what is it as a positive is that

38:37negative what's the amplification of

38:38this feedback and in the environment

38:40what things or forces are are

38:42influencing this and in what sort of way

38:45all right understand this and then it

38:47makes everything so damn easy I mean I

38:50guess it doesn't make things really easy

38:52but compared to doing it without this I

38:54mean yeah it's like putting on glasses

38:57after being blind and then learning to

39:01see you know if you do this it'll make

39:03you learn to see so if you enjoyed this

39:07video what I want you to do is just

39:09click that like button also let me know

39:12what you thought of this video in the

39:13comment section below I'm gonna be

39:14checking these comments myself

39:15personally and if you've got any

39:17questions about systems thinking or how

39:19you can be your systems to think let me

39:21know in those comments also subscribe to

39:24my youtube channel if you liked this

39:25video I release one of the

39:27every single week as well as customer

39:29interviews and other things that will

39:31help you on your journey of becoming an

39:33entrepreneur or if you're already one

39:34becoming a better one so thanks for

39:37watching this video and I look forward

39:38to seeing you in the next one soon

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