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Dan Heath

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  1. They can find us at Heathbrothers.com. That's Heath H-E-A-T-H. And all of our books are there. We've got a book about communication, a book about change called Switch, and a book about decision-making that might be of particular interest to the investing crowd. That book is called Decisive.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  2. Kind of visual or souvenir from the experience. And then he goes on to the next ones. And sometimes the quest is fun and easy. Like when you read about George Washington, sometimes it can be incredibly painful. I think it was Millard Fillmore that he said he barely survived the process of reading that book. But that's what a quest is like, right? Sometimes it's easy and sometimes it's hard. But the point is that we can bring structure to quest that keeps us on the road.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  3. Exactly right. And I think what's important for us to realize is that we have some control over this, that we can be shaping the journey. It's like we talk about in the book there's a kind of architecture of pride. And if we understand that architecture, we can create our own journeys. Like I have a friend who is a history buff. And learning about history is another one of those things that could be very amorphous. When will you quote unquote know history? Well, never in a certain sense. And so what he did was he turned his interest in history into a quest. And the quest was that he's going to read the biography of every American president, starting with George Washington all the way up to Donald Trump in order. And so it became like this, you know, back to that mental image of multiple finish lines rather than one. Now he's got 45 finish lines. And every time he finishes a biography, he goes and he buys like the presidential coin with that president, which is like a nice.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  4. Quit after that level, you still feel like you've accomplished something. And that's the Donkey Kong story, right? It's like if you conquer seven out of 100 levels, you still feel good about conquering seven levels And there's so many aspects of our life that I think this strategy would apply to that would keep us experiencing moments of pride and continuing on to the next finish line.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  5. But it provides a moment of pride And so back to Spanish, we would be much wiser not to think of it as a succession of kind of boring lessons that we have to endure, but in terms of levels. Level one might be, can I order a meal in Spanish with proper pronunciation? That's something you could do in two weeks. Level two might be have a simple conversation. How is your day? Where are you from in Spanish with a taxi driver who speaks Spanish? Level three is glance at a Spanish newspaper and find one headline in the newspaper that you can understand. Level four might be to follow the story in a Spanish cartoon. Level five might be Rita Kindergarten. Level book in Spanish. And so you see how dramatically that reshapes the mission. It's like every one of those levels is cool. Every one of those levels comes with a moment when you feel like, okay, I've done something. And then finally, every one of those levels is such that even if you

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  6. Level 3 is learning to play concerning hobbits from the fellowship of the ring. Level four is to sit and play the fiddle for thirty minutes with other musicians. Level five is to learn to play the promontory from the last of the Mohicans. And the kind of in battle, the moment of popping the champagne is to sit and play the fiddle for 30 minutes in a pub in Ireland. And isn't that great? Because you see what he's doing there. Number one, he's clarifying what's the end. And the end is that vision of himself in a pub in Ireland. I mean, what a great fantasy. Like that's something that will keep you sustained for a long time. But even more than that, what he's done is he's created a succession of intermediate finish lines, each one of which is fun and satisfying on its own merits. So learning to play the song concerning hobbits from the fellowship of the ring, which is a movie he just adored. That's something he can get to much, much quicker than that in fantasy.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  7. Era, but I love the hell out of those games. And you know, it's just level after level. Each one's slightly harder than the previous one. But this is the important part. Every level is fun. So I never finished Donkey Kong. Never. But I still had fun. And I don't regret the time I invested in it, which is very different from a lot of the things we conceptualize for ourselves. So anyway, back to the book. Steve Cam wanted to learn to play the violin. That was his learning Spanish kind of mission. And so rather than fall into the trap of just thinking about it as got to do a lesson, got to do a lesson, got to do a lesson. Someday I'll be able to play the violin. He created these video game-inspired levels for himself. So level one was committing to one violin lesson per week for six months. So that was kind of like the boot camp. And that one's not a lot of fun, to be honest, but the rest of these are much better. So level two is to complete Celtic fiddle tunes, a book by Craig Duncan.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  8. What are the finish lines en route to that master goal? So I think the way most of us think about it is in order to know Spanish, well, I'm going to have to try to squeeze in a Spanish study session and then I'll have to squeeze in another Spanish study session and then I'll do some homework and then I'll do some practice. And it's kind of like the way we're thinking about it is you take your medicine, you take your medicine, you take your medicine, you take your medicine, you take your medicine. And then someday you quote unquote know Spanish. And so when you conceptualize a mission that way, it's no surprise that the vast majority of us fail. We don't get there. And so Chip and I had come across a book from a guy named Steve Cam, K-A-M-B, called Level Up Your Life. And he's got what I considered an antidote to that. He talks about being inspired by the structure of video games, which if you've ever gotten addicted to a video game in your life, I'm of the kind of Pac-Man and Donkey Kong.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  9. Yeah, I think this is a really subtle but really practical idea. And it involves, we talked earlier about moments of pride. And so our quest here is for the things that we want in life, can we come up with a way to ensure that there are enough moments of pride along the journey that it keeps us on the journey? So let me explain what I mean. A lot of people listening, especially if they're Americans and were raised with one language, you know, may dream of learning a second language. I know I've always thought about, I'd love to learn Spanish someday. And so if you think about how most people conceptualize that mission in their minds, number one, I would point out it's not at all clear what the moment of celebration is. I think it's Jim Collins that talks about the champagne test. Like, when do you crack the champagne? Well, it's very amorphous in this. When do you know Spanish? So we're running a race without a clear finish line, but worse than that,

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  10. Said he knew that many people become paralyzed because they're afraid they're going to fail. They're afraid of what others are going to think. And so they create this very safe, riskless life. But she said, my father wanted us to try everything and feel free to push the envelope. And his attitude taught me, this is her talking, his attitude taught me to define failure as not trying something I want to do instead of not achieving the right outcome. And so back to the point of the book. This is an example of how even in a moment, a question at the dinner table as a parent, you can have an effect on your child that you may not even realize you're having. I mean, that's how powerful a moment can be.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  11. A hard degree of difficulty when she started her job as a fax machine salesperson. Her boss handed her a phone book that was her lead set and gave her a zip code as turf and she had to go door to door selling fax machines. As anyone listening to this podcast bought a fax machine from a door-to-door salesperson, that's Sarah Blakely. But even if we go one step further and we say, well, how did she have enough grit to survive that gauntlet of fax machines selling? She says one important thing happened in her childhood. She said when her family would have dinner, her dad would always ask her and her siblings a question at the dinner table. And his question was, what did you guys fail at this week? What did you guys fail at this week? And Sarah Blakeley said, if we had nothing to tell him, he'd be disappointed. And it seems counterintuitive, right, that he's encouraging them to fail.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  12. The lawyer confessed to her that in that meeting, he thought her idea was so bad that he thought she was sent with like a candid camera crew or something. And so he was trying to find the camera in the room. The textile mills that she needed to crank out a prototype of Spanks were all, I mean, all managed or owned by men and none of them understood what she was trying to do. It was only when one mill owner shared the idea with his daughters who told him, hey, call this woman back. That's a good idea that she finally had a chance to get the prototype made. And so the real question is not where did this idea come from? The real question is, how did she survive just getting door after door after door slammed in her face? And so there are two answers to this. The initial answer is Sarah Blakely before founding Spanks had spent years, I mean, years selling fax machines cold.

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  13. These days, and they say, you know, I was cutting the feet out of my hose years before. And to me, this is the real part of the story that separates Sarah Blakeley from the others because as most of the listeners will know, I mean, both investors and executives, the idea is often a vanishingly small part of the success. So thousands of women probably had this idea, but there's only one Sarah Blakely. Why did she succeed? Well, let me tell you about the kind of gauntlet of failure that she had to run in order to make this idea come to life. So first of all, virtually everyone that she needed to recruit to her side was male and virtually none of them understood anything about this. In fact, at one point, she was trying to find some IP lawyers and she met with this one law firm. So pictured them around a table. Basically all men and Sarah Blakely. And she noticed one of the lawyers kept looking around the room like a little bit suspiciously. And it was just strange. And then much later.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  14. About when Blakely kind of discovered the idea for Spanks, she was getting dressed for a party. She had a new pair of fitted white pants she wanted to wear, but she had a dilemma. She wanted to wear her pantyhose underneath the pants because they have kind of a slimming effect. But she also wanted to wear sandals. And for sandals, you need bare feet. You don't have bare feet with pantyhose. So what should she do? Should she wear the hose or not? And so she has this inspiration. This is a moment of insight. She cut off the feet of her hose so she can have the best of both worlds. But it wasn't that great of an innovation because, you know, the severed ends of that hose kept kind of rolling up her legs in an uncomfortable way. But she thought, hey, if we could do this right, we could create a real version of this. Women are going to love this. So, you know, fast forward to 12 years later, she had become the youngest self-made female billionaire in history. And so people come up to her.

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  15. Yeah, I love this story because one of my worst fears about this book is we tell some stories like Popsicle Hotline that are sort of fun and clever. And my fear is that parents are going to read this and think that they've got to do a bunch of like QT stuff. Like now every birthday has to have a bounce house or something, you know, that it's about these grandiose. And it's really not about that. And I think this Blakely story illustrates that. First, some backstory. I have to admit when I first started researching this, I knew of Spanks, but I didn't really know what spanks were. And so maybe if there are other people out there in my boat, I'll just share some basics. So there's a famous story

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  16. And so here's an example of a moment that every single person listening to this can create and probably should create because we all have a lot of people that deserve our gratitude. It's not easy. I mean, it's hard to force yourself to sit down and articulate something like this. It's personal. It can make you feel vulnerable or uncomfortable. But I'll tell you what, I mean, there is not a person alive who's ever done this that regrets it. It is such a powerful thing, not only for you, let's keep in mind, even though it spikes your happiness levels, imagine how it feels for the other person to receive a compliment like that.

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  17. What he or she did for you and how it affected your life. Let that person know what you're doing now and mention how often you remember what they did or said for you. And this sounds really simple, right? It's just kind of an elaborate thank you for someone who's been important in your life. It might be a mentor, it might be a colleague, it might be a relative, might be an old teacher. But what they found is the people who conduct a gratitude visit see their happiness levels spike for a full month afterwards, a month. I mean, back to your point about short-term versus long-term happiness, we can all think of a lot of things that will spike our happiness levels for five minutes or an hour. You know, I would go directly to the nearest Krispy Kreme for that five-minute rush. I mean, that's a sure thing.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  18. Well, I'll tell you about something from the discipline of positive psychology, which your listeners probably know is a part of psychology that's devoted to studying what makes people happier. And there is what I would consider maybe a greatest hit of positive psychology that's called a gratitude visit. And the gratitude visit is a very simple idea. I'll share with you the way that Martin Seligman, who's considered the godfather of positive psychology, here's how he describes it. Close your eyes. call up the face of someone that's still alive who years ago did something or said something that changed your life for the better someone who you never properly thanked someone who you could meet face to face within the next month do you have a face in mind so your task is to write a letter of gratitude to that person and deliver it in person the letter should be concrete to maybe 300 words-ish be specific about

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  19. Own software package. And then the third part of that recipe is that it's discovered by the audience itself. And that's probably the most important part of the recipe is that the aha moment happens in their heads, not yours, and that you didn't just attempt to take an aha moment that you'd had, you know, condense it to a PowerPoint or an Excel document and shove it across the table. And so I think that's the lesson for communicators is can you create a situation where your audience can have the same epiphany that you had? Can you replicate not just the factual information, but the actual discovery of it?

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  20. Them to climb. But what he found is the team really struggled. Some couldn't figure out how to use certain features. At least one team couldn't even figure out how to sign up. And Guthrie later told a reporter it was a complete disaster. But of course, that was the point, right? That was the moment getting them to trip over the truth. They had to see this for themselves. And once they had, they had that emotional willingness to change. And by the end of the second day of the off-site, they'd produced a plan to completely rebuild the platform. So if you kind of reverse engineer all these stories that we've talked about, what you find is a three-part recipe. You find a clear insight. I know Azure isn't customer friendly enough. That's compressed in time, right? There's something that can be condensed down to a moment, the moment when you realize, hey, we've been eating each other's poop in that village or the moment at the off-site when they realize, hey, I can't even sign into my.

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  21. New unit, he started with some visits of customer sites. He wanted to hear customer feedback, how are things going. And his visits tended to be pretty consistent. He found he realized that customers appreciated the technology. They thought it was a good feature set, but it wasn't very customer friendly. And so if you kind of freeze there, here's a guy who has an insight. He knows that in order for Azure to deliver on its potential, it's got to become more customer friendly. Question is how do you communicate that? Is there a way to get people to trip over the truth? Well, here's what he did. He called an off-site meeting with his new team. He invited all the senior managers and software architects. And when they got to the off-site, he gave them a challenge. Build an app using Azure, just like one of their customers might have to do. And it wasn't designed to be a difficult challenge. This was not like a development Everest that he was asking.

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  22. Yeah, great question. And I think that even though these stories are a bit dramatic, you know, the poop story and cult members and so forth, there's a very practical lesson here. So I'll give you a concrete business example. So a guy named Scott Guthrie, who's one of the top executs at Microsoft, about six or seven years ago, he was tapped by Steve Ballmer, who was the CEO at that time, to lead their cloud computing service called Azure. And so Guthrie hadn't been in.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  23. One day, and his wife suddenly realizes that these outbursts aren't just him having bad days. They're actually a defining character trait. And in that instance, she realizes not only the truth about her husband, but also the fact that she can't bear it anymore. That's the crystallization of discontent. And that's what we saw in the CLTS story, right? That in an instant, all those fragments of truth that were already there were suddenly stitched together because of what this facilitator did.

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  24. Life changing. It reminds me of some research that was done by a psychologist named Roy Baumeister who studied people who have these sort of sudden realizations, you know, people who join cults and later leave them or alcoholics who become sober or intellectuals who were once communist and then recanded communism. And he said that in these situations, these realizations were often characterized by what he called a crystallization of discontent, which was, you know, one moment, kind of one of those lightning bolt moments when an array of misgivings or complaints suddenly became linked in a global pattern. So imagine just in your mind just a hundred scraps of cloth that are laying there and then in an instant they're all knitted together and you can see the hole suddenly. You know, you might imagine a husband who has a really bad temper and he has a ferocious outburst.

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  25. But the way that this was set up, it caused them to, as we say in the book, trip over the truth. And to trip over the truth is to experience an insight that packs an emotional wallop. It's like when you have a sudden realization that you didn't see coming and one that you know viscerally is right, that's when you tripped over the truth. And in the book, we go on to explain how as communicators, we can use the same strategy to get our audiences to kind of have those visceral moments of realization.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  26. And so that's the trigger. That's the spark for the behavior change that's responsible for this behavior. And Dr. Carr admits this is a brutal process. I mean, this is very, very uncomfortable, but it is also effective in their experience. Like in Bangladesh, where this methodology CLTS became a cornerstone of the work, the rate of open defecation declined from 34% to 1%. And I think to, I mean, this is just a crazy moving, powerful emotional story. If I could sort of zoom out for a minute and talk about, well, what does this have to do with the rest of us? I think what's distinctive about this story is that all the villagers already had all the information that they needed to come to the same conclusion. There's no news being added by this facilitator. They already know where they poop. They already know that flies flit between the poop and the food. There's no news.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  27. And that's the moment that Kamal Karr calls the ignition moment. At that moment, the truth is really inescapable. And at that point, Dr. Carr describes that the discussion tends to spiral out of the facilitator's control. People are agitated by this. And they start saying, you know, we can't continue this. This is crazy. This is madness. We've got to stop this. And they often ask the facilitator what they should do, but the facilitator won't answer. He says, you know, you know your village better than I do. You're free to choose anything you want, including continuing to do what you're doing today.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  28. Not really. And then he walks over to a pile of poop near the area where they're meeting and he visibly dips this hair into the poop and he comes back and he plunges that dirty hair into the glass of water, he swirls it around. He hands the glass to one of the villagers and asks him to take a drink. And the man refuses for obvious reasons. And the facilitator says, well, why do you refuse? And the guy says, well, because it has poop in it. The facilitator looks puzzled and he says, how many legs does a fly have? People say six. Facilitator says, right. And all those legs are serrated. Do you think flies pick up more or less poop than my hair did? More. Do you ever see flies on your food? Yeah. Then do you throw out the food after you see the flies there? Not usually. What are you eating?

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  29. Say, you know, if there's a rainstorm or if you have diarrhea and you just can't make it to that area. And so out comes more chalk. And now people are scattering it all around. Sometimes it's just around people's homes because they can't make it to the common areas. And at this point, it's hard to miss that basically the entire village is covered in yellow chalk. And the crowd is starting to get a little bit anxious. There's just a weird energy. They're a little bit disgusted, a little bit embarrassed. They're not sure where this is headed. And at that point, the facilitator asked for a glass of water. So someone provides the water and he asks a woman in the crowd, would she feel comfortable drinking it? And she says, well, yes, of course. And he asks others, and they say, yes, we would drink it. He then pulls a hair from his own head. And he said, what's in my hand here? The crowd says, a hair. And he says, can you see it clearly from where you are? And they say, no.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  30. Little bigger because people are just curious about what's going on here. And he asked them to draw out in the dirt a rough map of the village. And so they sketch out the boundaries of the village and then landmarks. Here's where the school is. Here's where the church is. And there's a stream that flows this way. And then he asked the people around to put a stone or a leaf to mark where their individual homes are. And so they're kind of drawing this community map and the dirt together. And once the map has been kind of fleshed out, he brings out this bag of yellow chalk that he's brought and he asked them to sprinkle some yellow chalk on the places where people poop. And he says where there's more poop, use more chalk. And so people are kind of giggling nervously. But the kids get a kick out of this. They love to sprinkle the chalk. And of course, they know where the areas are. So they do that and they've marked the open defecation areas. And then the facilitator says, well, what about in an emergency?

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  31. He conducts a walk from one side of the village to the other. He starts by asking some questions. He says, well, where do people poop here? And so they point them to the right place. And he kind of lingers there uncomfortably. They're a little bit embarrassed. You know, there's poop everywhere, but he gets interested. He says, you know, whose poop is this? And he waits for someone to raise their hand. And he asked, did anyone poop here today? And a few more hands go up. And then he asked really seemingly gross questions. Why is this poop yellow? Why is this one brown? And, you know, there's flies everywhere. He says, are there often flies here? And people nod. And then, you know, maybe there's a chicken kind of pecking around in the area. And he asks, you know, do you eat this kind of chicken? He's been trained to only ask questions. You know, he's not there to pass judgment or assert the truth. He's just asking questions. And so they finish this walk. They come back to a big public space. And by now, the crowd has grown a little bit.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  32. Fanciest materials in the whole village, and they felt uncomfortable kind of defecating. And one of the best built places in the village. And so Dr. Carr realized that open defecation wasn't a hardware problem, it's a behavioral problem, that until the people in a particular area wanted to change, the mere existence of latrines wasn't going to help. And so he developed a methodology that's called community-led total sanitation abbreviated CLTS. That sounds super boring, but let me tell you, this is anything but a boring process. Let me just walk you through what happens. So a facilitator that practices this CLTS methodology, picture a stranger arriving in a village, he kind of shows up and says, hey, I'm studying the sanitation profiles of different villages. Do you mind if I look around and ask you some questions? And so he tries to hang around long enough that he's got a small crowd with him.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  33. And so forth. So, Dr. Carr, it's K-A-R, by the way. He goes to this community. He founds latrines were perfectly well built. They were installed properly. He also found something that was a little more surprising, and that was everywhere he went, in the fields around the villages, he stepped on poop. Open defecation was still rampant there, despite the latrines. He said it was an eye-opening moment for him because he realized, you know, that the development organizations in the world had been thinking about open defecation as a hardware problem. Like if we just get enough latrines out there, we're going to fix this. But what Dr. Carr was seeing was it wasn't that simple. Some villages were simply, you know, set in their habits. They'd always done it one way and they weren't going to switch. And others were kind of confused by the latrines. Like in some places, the latrines were some of the...

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  34. A lot of communities in the world are still practicing open defecation, i.e. people pooping in public. And as you would expect, that comes with a lot of health consequences. It can lead to the spread of diseases like cholera, hookworm, roundworms, schistosomiasis, and more. It's a really bad problem. And so a lot of social sector organizations are trying to fight this. And for many years, the obvious solution to this problem was, well, if people are pooping on the ground in public, let's give them some latrines. Let's give them some facilities so they have a place to dispose of their waste properly without endangering their neighbors or themselves. So there was an organization called Water Aid that had funded the construction of some latrines in northern Bangladesh. And our story starts with a guy named Dr. Kamal Karr, who was hired to go assess that work. So they paid him to go to northern Bangladesh and check out where the latrines installed properly, where people using them.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  35. First of all, I feel a little silly saying poop. The word we use in the book is the S word for feces by design, as we'll get to in a minute. But just for the sensitive ears in the audience, we'll use poop. So backstory.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  36. They're squandering. I mean. Banks like many businesses talk a great game about relationships and all the TV ads have people holding hands and soft lighting and we're all about the customer relationship. Well, here's an example of where they're just essentially taking dynamite to a relationship and taking a positive emotional culminating moment and turning it into a minor transaction fee. I mean, that's just malpractice.

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  37. You've been at this a long time. Here's the deed to your house. That's an emotional moment. That's a peak moment. And then someone in the back of the room raised their hand and said, you know, not only do we not do that, we actually charge people a deed transfer. When they complete their mortgage, a deed transfer fee. And so, you know, back to your question, it's like what people are sending us a lot of times are the deed transfer fee equivalents from their respective organizations. It's just like they have these epiphanies where they slap themselves on the forehead and say, how could we have missed that that we're actually charging people money at this moment that should have been the culmination of a long and successful relationship?

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  38. So think about a wedding day and the ceremony and the dancing and the food. I mean, it's a ceremony to celebrate a transition in a couple's life. Graduation, a ceremony to celebrate a transition. Rites of passage ceremonies ranging from Quinzenharas to Bar Mitzvahs. They're pegged to transitions. And so when you catch on to that, it makes you start paying attention to the transitions that are important in your work or in your life. And so back to this bank, we were saying, you know, think about the moment when you finally pay off your mortgage, you know, potentially 30 years later, you've been diligent, you've made every payment. That is a heck of a transition, not to mention an end back to the peak end principle. And so we were saying, you know, the way this should work is that when you make that final payment, someone comes out and visits you from the bank, knocks on your door, they've got flowers, and they've also got your deed, and they shake your hand and they say, you know, great.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  39. Some of the most surprising feedback is just people kind of chuckling at their own organizations about how bad they are at this stuff. I'll give you an example. We did some work for a retail bank in Australia, and we were talking about retail banks are unusual businesses in that they have such a long trajectory with customers. I mean, you could have a relationship that lasts 30, 40 years. And because of what banks do, they're often part of really important events in your life. You get married, you know, you're adding someone to your account or you switch jobs and you may have new sources of income or income dropping off. If they're managing your mortgage, that's a really important thing. And so we talked about how emotional these moments are. And we were talking in particular about the importance of transitions, which is a theme in the book. If you look at the big rituals that cultures evolve over time, so often these rituals are pegged to transitions.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  40. People we care about, whether that's customers or patients or employees, these are the ingredients we have to work with. What we know is that great experiences hinge on peak moments. That's the first part of the story. And then the second part of the story is that peak moments are built from elevation, insight, pride, and connection.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  41. The moments they remember from that, they tend to remember these moments where they were recognized for something they had done. Maybe you got an award or maybe you were praised for some work you had done, or maybe you accomplished something you weren't sure you'd be able to. Maybe you weren't recognized by others, but you just felt this intense sense of pride having conquered something big that you'd set out to do. And then finally, the fourth element of these moments is connection that so often these special moments tend to draw us closer to other people, whether that's in a one-on-one relationship or often groups bond in moments that require them to do something dramatic, something that forces them to struggle. Think about boot camp as kind of a classic example of that. A bunch of people who are strangers to each other and different in so many ways are bonded for life as the result of this kind of grueling experience that they have to go through together. So when we talk about creating better experiences for the

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  42. No question. Yeah, emotion is at the heart of what makes experiences powerful, what makes moments powerful. And in the book, the book is organized according to four elements that we saw recurring again and again in different kinds of peak experiences. And those four elements are first elevation. These moments tend to produce positive emotions like joy or delight or surprise. That's the popsicle hotline story. It's a great moment of elevation on a sunny Los Angeles day, someone brings you a popsicle on a silver tray. The second trait is insight. What we found is that there are moments in life when you're just kind of thunderstruck by a realization. Maybe it's something you've realized about yourself. Maybe it's a moment when you realize, you know, I can't take another day of this flipping job. Like this is it. You know, these epiphanies, these realizations. The third element of defining moments is pride. If you look at people's careers,

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  43. That's what makes the experience special. But here's the bottom line. These remarkable moments don't plan themselves. And so if you're in the business of providing service to customers and you haven't thought carefully about peak moments, that's a huge opportunity.

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  44. Most positive moment and a positive experience. And there's the ending. It's called the peak end principle. And so when you catch on to that as someone in the business world, especially service leaders, what you realize is that to have a really great experience for the people you serve, whether that's customers or patients or students or otherwise, not every aspect of that has to be brilliant. Not every aspect has to be perfect. You know, I think there's this illusion that in order to do something great, it's got to be non-stop greatness. Every detail has to be perfect. And in fact, what we know is that a lot of great experiences are actually mostly forgettable, but occasionally remarkable. And that's the story of the magic castle, that despite a lot of average, a lot of mediocrity, these special moments like the popsicle hotline, that's what endures in their customers' memory.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  45. And so, when you start to understand that side of their business, now you can understand how people could really appreciate this experience, how they could find it one of the highlights in their vacation, even though a lot of the amenities might be very poor by Ritz Carlton standards. And so I think the importance of that story to me, this is not a story about popsicles or even a story about the hospitality industry. This is a story about experience. And what we know from research and memory is that when people look back on their experiences, they don't just kind of load them up like a video that you can watch beginning to end, that in fact most of what we experience fades out. And what we're left with are particular moments. And there's actually some research that explains why we remember the moments we do. In fact, there are two kinds of moments that we disproportionately recall. There's the peak of the experience, which is the

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  46. Can do. So if you stay there as I did, you start noticing that they do these remarkable things, one of which is there's a cherry red phone mounted by the pool, and just above it is a sign that says popsicle hotline. And so if you're brave enough to go over and pick up the phone, somebody answers, popsicle hotline, may I help you? And you can order up grape and cherry and orange popsicles delivered to you right at Poolside on a silver tray by someone wearing white gloves like an English butler all for free. They have a snack menu where you can get for free cracker jacks, sour patch kids, cream soda, just for asking for it at the front desk. They've got a board game menu.

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  47. Okay, now what I want to tell you next is whatever is in your head right now, it looks nothing like that. It is actually a two-story apartment building built in the 1950s that was later converted to what is effectively a motel. It was painted bright yellow. It is utterly average to look at. It looks nothing like a castle. The rooms are average, the lobby is average, the courtyard where the pool is is average. So that would be the end of this story if it weren't for one particularly remarkable fact, and that is that this hotel, the Magic Castle Hotel, is ranked the number two hotel in Los Angeles, according to TripAdvisor, based on thousands of reviews. It outranks hotels like the Ritz Carlton, like the Four Seasons. And so you just kind of slap your forehead and say, how could that possibly be true? Well, the executives of the Magic Castle have figured out what moment

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  48. Let me tell you a story that I think captures the meaning for business leaders. So there's this hotel in Los Angeles called the Magic Castle Hotel. And I know you've got listeners all around the world. So if you've never stayed there, I want you to just picture in your mind the magic castle hotel.

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  49. Hours just on this manic brainstorming session about moments and the research that ties to moments and the stories of moments and political moments and emotional moments and personal moments. And we come out at the end of this, all our family sitting in the living room and we kind of triumphantly announce that we've got a new book. It's going to be a book about big, powerful defining moments. As we announce this, we look around the room and there's this kind of visible sense of relief on their faces because apparently all of them hated the prior book idea. We're just too nice to tell us. So that was the birth of this book.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT

  50. Disney World and the fact that there's somebody there who was trying to scope out the best place for families to take their photos and to set up these little landmark photo opportunities. You think about the Olympic medal ceremony, that kind of moving moment when someone who's won the gold medal stands on the podium and the anthem plays and just what a beautiful moment that is. And somebody in human history sat down and scripted out what that would look like and talked about the details. We even talked about, my brother had heard the story about BMW is that they had this engineering team that was working to perfect the ignition moment. You know, you turn the key or you push the button and the engine brooms to life and that my brother had heard that they made use of kind of acoustic trickery and other things to make that moment seem really muscly and the kind of thing that will get your pulse pumping as a driver. And so as we went through this discussion, I mean, we spent two.

    2017-12-31 · We Study Billionaires · TIP171: The Power of Moments w/ Dan Heath (Business Podcast) · IDENTIFIED FROM THE TRANSCRIPT