The Game That Made My Life Fun, Accountable And Challenging
A Finance Guy, Ayn Rand, Y2K, A Motivational Speaker Walk Into A Bar
The Game
Around the turn of the century, Y2K - also known as the millennium computer bug, was a big deal globally and the brokerage industry was no exception. Not only was every firm compelled to update their enterprise systems, my firm was the world’s leading underwriter of technology companies and leading sell-side research house.
At the same time, I was updating my own internal enterprise system by reading the philosophy of Ayn Rand and upgrading my career through the firm’s Management Development Program. The next three years began with moving to a new city and schools for a new career assignment. While the Dotcom crash was affecting our clients particularly hard, the brutality of Islamic terrorism on 9/11 was inflicted where my firm was the largest tenant - the World Trade Center.
In that crucible, I was beginning to learn about reason, independence, and rationally chosen values for living with meaning and purpose. And while reading the fiction and non fiction of Ayn Rand, I developed a professional relationship with a consultant who was helping me train our Financial Advisors in the practice of goal-directed action. One important thing he did was flip the script on “time management” by stating the obvious: we have 24 hours each day.
In other words, we can maximize the value of our time with activity measurement and management. When done effectively, this blends the absolute of reason with the virtue of independence, and rationally chosen values. And that is perfectly human: it is necessary to combine the facts we observe and the basic concepts we know to form new ideas. That will help us achieve greater awareness - and without that, I would not have recognized the opportunity described below.
The League
Three years later I was part of the regional management team hosting an area-wide special event for a select group of Advisors. It was 2005 and about 30 of us gathered in a small banquet room for a cocktail reception followed by a presentation from a motivational speaker who was making the rounds with a somewhat popular book and consulting practice.
However, when he took the microphone, the main attraction said something I did not expect - and it did not sit well with the rest of the audience. He told us up front that he was not a motivational speaker. Motivational speakers make you feel good about yourself. They tell you the sky is the limit and your potential is your dream, but he was not there to make us feel good about ourselves. That got my attention. His name was Sarano Kelley and his book was titled The Game: Win Your Life in 90 Days.
At that point, I had been a student of Ayn Rand’s philosophy for about five years but not yet introduced to the Moneyball story of Major League Baseball, and I was not aware of the principles for objective investing. However, I was about to get a Moneyball Method lesson that has stayed with me ever since.
Whether we liked it or not, Kelley was going to teach us accountability. To me, his story telling skills were up to the challenge and the metaphor was team sports. Kelley then named the essentials: a rule book, a scoreboard, a time clock, a court or field, a ball, goals, referees, coaches, teammates, and spectators. Of course, all of those roles have responsibilities that are accepted voluntarily.
Within that construct, the accountability partner for each player was the coach of the team. But if we chose to play The Game individually, there were two strict rules: 1) Your accountability partner is not your friend, and 2) You will be held accountable twice per week during telephone calls that last 10 minutes - exactly.
Training Camp
This is where it gets interesting. The next day, the chatter among the attendees who were not complaining was to get in The Game. And for each of us, we needed to decide on two things: 1) What our Game would be (an important goal to win), and 2) Who would be our accountability partners. Again, they cannot be a friend who will be lenient, but your Game can be any aspiration: business objectives, physical fitness goals, personal relationships, educational achievements, or creating or building something. Obviously, it must be challenging and life enhancing.
And there were two things that were uniform among the Games: 1) The time clock was set for 90 days (because it takes about 13 weeks to establish strong habits). If the challenge takes longer, then set an intermediate goal and reset the clock for another 90 days, and 2) The biweekly accountability calls are not optional and they are not flexible. Twice per week at a predetermined time that ends at ten minutes is carved in stone.
The agenda goes something like this: What did you say you would do? How did that work out? What did you do? What progress has been made? What will you commit to for next week? In effect, your accountability partner is the coach, referee, scorer, time keeper and your biggest fan. But cutting slack and making excuses is against the rules. In addition, predetermined penalties can be assessed and enforced for infractions.
What you customize are the daily and weekly tasks for which you will be held accountable. And both of you agree to what those rules are - in advance. But what does this have to do with The Moneyball Method? Everything. Defined values, goals, aspirations, and timing are primary rules of The Game.
Game On
Yeah, right. How did that work out? For me, The Game was to become a better father to my son who was a college freshman. He chose a school for less than great reasons, I told him so, and said I would support his decision for the first semester. If it’s not working out, I would make changes. Bear in mind, college life demands greater self-discipline for academic success. And I knew he was not a self-disciplined student, but he needed to learn the rewards and consequences of independence on his own.
As I expected, academic probation and frustration right out of the gate. Like father, like son. I had also found myself on academic probation after my first semester in college - and for the same reasons. But my son had a father who cared, was engaged, and with my completion of Training Camp above, I proposed The Game with my son. A good father is a great accountability partner, not his child’s best friend.
He welcomed the idea enthusiastically. After all, what college student doesn’t want regimented telephone calls with their father twice per week while away at school, right?
The objectives and rules we set were simple. Like The Moneyball Method, they met the need, were easy to use and understand, and were reliable: 1) Improved test scores, 2) Quality written assignments, 3) The pride of achieving number 1 and 2. And together, we created an Excel spreadsheet with seven columns for each day of the week and 16 rows for each hour to accommodate all of that plus 1) Scheduled classes, 2) Study hours, 3) Recreational activities, 4) Accountability calls, 5) Dining hall, and 6) Rest.
At the end of every quarter, we discussed his achievements, challenges, the next quarter’s academic schedule, and created a new spreadsheet with new accountability call times and dates.
Moneyball
And what does this have to do with The Moneyball Method? Everything. Ultimately, my son took ownership of the entire week and the accountability calls were a highlight. Both of us enjoyed the preparation, the anticipation, and he was waiting by the phone every time. And on the rare occasion I was one minute late, he called. I was held accountable. It was that important to him - and to me.
We did this for each academic quarter through his sophomore year, his GPA improved every time, and his graduation with a major and two minors had special meaning for us. And it’s not a stretch to compare our experience with the new advisor/investor dynamic that manifests itself with the objective, value-driven philosophy that eventually became The Moneyball Method.
Philosophically, I had learned that there are no contradictions in nature, but I was still learning to identify contradictions in man-made systems. Professionally, the man-made system was the application of marketable securities to an individual investor’s short and long term goals.
What I did not know was the “investment objectives” on the new account forms (aggressive growth, growth, growth and income, income, capital preservation) were psychological approximations and potential contradictions for individual investors. The following year I was introduced to a system of personal accountability, financial consulting and performance reporting that was diametrically opposed to the traditional advice model - even for those advisors who practice comprehensive planning.
And it began with a white paper written by David Loeper that included the quote (altered slightly from the original), “If you perceive a contradiction, check your premises.” Ayn Rand. I immediately began studying that paper. My conceptual framework was growing.
The goals to be achieved for objective investors had to increase from one to several and the time frame was expanded from 90 days to the life of the investor. In addition, money and markets were integrated as goals and activities. Of course, they add complexity, but the essence is identical to our simple spreadsheet and calendar.
The Site Map and the Fact and Values Matrix of The Moneyball Method contain the defined values and activities for the only standard of performance that matters: Win Your Life!