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HOW TO CREATE A 100 BILLIONS DOLLARS BUSINESS WITHOUT SPENDING EVEN A SINGLE DOLLAR ON ADVERTISING

(originally published on 2016)

Think of a situation where each employee wakes up in the morning with a great passion to work , with a big drive in his eyes and returns home with a sense of satisfaction.... what an enormous impact it will make on us, on our children, on our ability to be attentive to our spouses and others among us, and how it will improve our ability to have a better life ... or In fact ,,,,, to live life fully!

How is your work life ? as the "story" above ? how close is it to your own reality ? What causes people to get up in the morning and go to work with a sense of reluctance, with low energy and even worse, to return home without being satisfied at best, and at worst, to be nervous and anxious? Everyone who leads people, whether he leads a team of two or an organization of 30 thousands , has a tremendous impact on his employees' lives. Every leader in the organization has a direct impact not only on the performance and the ability of his team to deliver the expected outputs , but also has a direct responsibility on their mood, their family life and ultimately their health. The leader role is to create opportunities for those who chose to FOLLOW him .....and he has to create a work environment that each employee will feel that he is taking part of something that is bigger than himself and it doesn't matter which level this employee might be. When each leadership layer in the organization leads a vision of people development, focusing on teamwork and allows room for mistakes, the day that we all wake up with a drive in our eyes and a sense of satisfaction ,will start to be realistic.

I believe we have the ability to change our way of life if we will choose to do so! We need to develop a layer of courageous leaders that will take the responsibility for what they do and will look for the best interest of the organization and employees before their own good. If we choose not to see the people as numbers, if we choose to make important decisions based on our beliefs and give less importance to bell curves, normal distribution and other numbers without a real meaning (and I'm not underestimating the importance of hitting the numbers) ,we will create together a world where people are less nervous, more responsive, and especially more happy, which will lead eventually to stronger economy. if you are still not convinced, I advise to visit one of COSTCO stores and see an organization who works the opposite from his competitors in almost every aspect of the business, starting from the quality of their products, the way they treat their employees ,and the growing path they create to leaders within.


The co-founder of COSTCO and the one who outlined the way is no other than its legendary founder James Sinegal.

COSTCO climbed up rapidly and is now considered the second-largest retailer after Walmart with a sales turnover of over 100 billion dollars a year !! In COSTCO , the meaning of OPEN DOOR POLICY is different from what we all know, when the CEO answers his own phone, senior executives flying alone with no entourage ,and the CEO earns 48 times the median salary (While the CEO of Walmart earns 796 times the average wage as of 2012), is rarely seen on today's economy. On average, Costco pays its workers about $20.89 an hour (in contrast to Wal-Mart which pays its full-time employees $12.67). More than 80% of Costco employees have company-sponsored health insurance. About 90% of its employees have retirement plans. In 2009, when the recession hit the United States, Costco CEO Jim Senegal approved a $1.50-an-hour wage increase spread over 3 years. When Jim Sinegal was asked about the approach he took ,the first thing out of Jim’s mouth was, ‘This economy is bad. We should be figuring out how to give them more, not less,” As a result, employees rarely leaves ,and also their customers; 90% from 64 million network customers renew their annual membership fee. The turnover rate of employees who have been there over a year is 5%. Turnover rate of Costco executives is even lower at 1%. That way, the company saves quite a bit in having to train new employees . What about leaders within the organization? 70% of the store managers started their course in junior positions and moved up the ladder; an amazing figure. But this is not the end......


THEY HAVE ACHIEVED ALL OF THIS WITHOUT SPENDING EVEN A SINGLE DOLLAR ON ADVERTISING ! COSTCO proves that things can be done differently, and if other companies will consider to adopt this model of leadership ,and will choose to put their employees at the centre , we all could be in a positive direction towards the desired goal. So ..what I'm trying to say is ...... Our work plays a key role in the life of each of us and therefore each leader has huge responsibility, but also the ability to directly influence what is happening around us and in our lives. We need more "Sinegals".

The change must come from organizations around us, big and small, public and private, medium-sized businesses and small businesses each of them in their respective fields should embrace, lead and act the Jim Sinegal way! If a layer of management in any organization small or big, choose to lead through the vision of people and not through numbers, through inspiration and not authority, through opportunities of development and encouragement of trying and fail, we will might have the chance to create a society where people get up in the morning and go to work with expectation and desire to contribute and to make a difference.

This will create a real growth engine to push the cart that we all on it ,in the right direction! So who will be the next Jim Sinegal in your organization ... maybe you? As always, hope it helps you rise and don't forget ,


Every Day Is Day One!

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