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Corporate failure & Fluid Shares

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Ten years before it happened, Jonar Nader warned about corporations collapsing! Listen to the warning and to the solutions. Jonar defines leadership in this interview. Further below is a transcript of the video.

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Here is the transcript:

Jonar Nader: But I’ve been putting a warning right throughout the USA, These companies that you tell me are not failing, you have great bottom line results, who look fantastic. I can look behind the balance sheet and I can tell you, these companies will collapse hugely.

Michelle Merker: You have a concept of fluid shares that really caught my attention that holds at everyone in the company, from the janitor to the manager, should be paid the same.

Jonar Nader: Yes.

Michelle Merker: And I was thinking about that thinking about that for a minute because I couldn’t figure out where …

Jonar Nader: Yes.

Michelle Merker: …you were going with this when I first read that idea. Explain that concept.

Jonar Nader: Yes. Look, I have got to tell you, whoever is listening here, and they’ll immediately say, “Oh, no, that won’t work. Oh, no, some people deserve more money than others. Some people are more clever than others.” I agree with you. And fluid shares is a dangerous little bottle. Do not give it to someone who is not sick. This is a medicine. It’ll only work if you have an illness. If the illness is that there’s a “them and us” attitude in your organization, that if there – you have a thousand people in your company and if someone is stealing something, that no one cares. If someone breaks something, no one cares. If you spend years trying to build an account and then the receptionist loses a business because he or she doesn’t care. If that is the kind of environment in which you work, where there’s no respect from top to bottom, you need fluid shares. And fluid shares say this: that we are all responsible for making the business and anyone of us who has the capability to lose a customer is just as important as anyone who actually makes the customer. And, therefore, virtually everyone in the organization has the capability to lose a customer – from the person who cleans my room at the hotel, the person who irons my shirt, the person who delivers the box of broken goods when I desperately needed the goods to arrive today. And fluid shares says this. We stop the “them and us” attitude by saying, “Hang on a minute, how much do we all earn? You earn $30 million. I earn $20,000. What’s the average list? Are we all in the average?” Now we throw in the concept of who’s more important than the other. Now we’re saying, “Let’s focus on what we’re here to do.” And we’re not here to just generate bottom line. Throw the bottom line out the door. I don’t care about bottom line. What are we here to do? We’re here to publish books, make toothpicks, make a restaurant. Now let’s focus how do we do that. And then here’s the rule: that whatever money we make, we split equally. So let’s say we make a million dollars net profit. Half of it is split by the staff. If we have 10 staff members, that’s half a million dollars divided by 10. It’s very clear, very easy, everyone can see. If we lose this table, this chair, it’s going to cost us a hundred dollars to replace. That comes off the bottom line, which means I now can’t share in that because money is going out. We win together, we lose together. I have seen cases where people who were earning $20,000 are now earning $80,000, where people who use to always say, “Oh, we need more head count. Oh, we’re just so busy, can you please give us more head count.” And I say to them, “Fine. If you want more head count, that means that half a million dollars we were going to share is now divided by 11 not divided by 10.” They’ll say, “Oh, no, no. Forget the head count. We’ll do it.” And so people are now conscious. I also say to them, “Anything we save, half of it is split by the staff.” So if it costs us let’s say, $10,000 a year to run the phones, if we can bring it down to five, we’ve saved five. Now that five is going to be – half is going to be shared by us all. And now people can measure it. It’s fluid, meaning every minute every day, everything you do actually makes sense and I can easily calculate it. Do you think the person who irons my shirt at the hotel can calculate by the end of the year what her impact on me is?

Michelle Merker: No.

Jonar Nader: At the moment, no. There’s no connection between what that person does and at the end of the year how it happens because the boss wants to buy a new fancy car and they want to – there’s no real understanding of what it takes to make money. Fluid shares says, “Let’s get rid of the notion of one person is more important than the other. We win together. We lose together and we share everything together.” Now if I see someone stealing a ten-thousand-dollar computer, that $10,000 is going to come off the bottom line, and I’m going to the boss and say, “That person is stealing my salary,” because that’s going to come off my bottom line. Now that little dangerous medicine bottle is so powerful. It’s got nothing to do with communism or socialism or anything like that. It’s got to do with “let’s focus on why we’re here.” So many people – I have a job and they don’t care why they’re there.

Michelle Merker: And so many businesses are going under. I mean we talked about good economic times and things like this, but a lot of businesses are floundering. A lot of businesses are in trouble. Employees are job hopping. They can’t keep stability in their companies.

Jonar Nader: Yeah.

Michelle Merker: A lot of this information in here – although really I thought it was more of a self-help book – I realized it certainly had a lot to do with management and leadership and could be used by companies…

Jonar Nader: Yes, absolutely.

Michelle Merker: …themselves.

Jonar Nader: Well, now, let’s see why our companies are failing. Now, there are just as many companies who are supposedly not failing, but I’ve been putting a warning right throughout the USA: These companies that you tell me are not filing, you have great bottom line results, who look fantastic, I can look behind the balance sheet and I can tell you these companies will collapse hugely because a lot of this stuff used to be we plan 10 years ahead, five years ahead. When I was a kid, we we’re doing three-year plans, then one-year plans. Then it was by quarter, by half. Now you can’t finish your lunch. Someone taps you on the shoulder and says, “Have you made your target?” It’s a lunch time short-term focus. No one cares about the future anymore. So when you as my boss come to me and say, “Jonar, have you made your figures?” And if I haven’t and I think I’ll and look, “Oh dear, I haven’t.” “Jonar, can you sack three staff and stop that project we were working on. And I know we spend $2 million, but it doesn’t matter because we’re going to save a million, you know.” And it’s all fake. So these corporations will crumble because the only reason they’re actually surviving is through manipulation of bottom line, stupidity of Wall Street and momentum. They’re going on what their forefathers gave them. Their forefathers gave them a brand, a market share and momentum and they’re using that up pretty quickly. So. Now. back to the book and what the book does. It actually teaches people the real essence of things, because you can’t lie about the real essence of things.

Michelle Merker: Right.

Jonar Nader:I say something very controversial no one else says. It’s that there’s a big difference between being a leader and engaging in leadership. So it’s unfortunate the two words sound the same.

Michelle Merker: Right.

Jonar Nader: Being a leader is not about leading people. People are so enamored about, oh, I’m a leader, therefore, who’s following and whatever. Following and all that is inconsequential. Being a leader is actually about carving a new path. And I could carve a new path to destruction. I can carve a new path to wealth, to benevolence or whatever. But a leader’s role is to carve a new path. And there are many who have done that. And it’s usually the minority who does it. So people say to me, “Jonar, how are you going to change the world?” And I say, “You know, it’s easy. You just get the minority working,” because they’re – you look at anything that’s happened…

Michelle Merker: Sure.

Jonar Nader: …it’s the – it’s the few people who’ve made it happen. Leadership on the other hand is a quality – a quality like honesty, like valor, like integrity. And leadership is about breaking barriers. And that’s where I come into clash with the Chinese philosophies, which I recommend and hold dear. Chinese philosophies though I disagree with when they say, you are – you’re supposed to have conflict avoidance. I mean the book “How to Win Friends” is about conflict avoidance. It’s about not engaging in a battle …

Michelle Merker: Right.

Jonar Nader: … conserve your energies and all that. That is wonderful. But if you don’t break this barrier down, the intimidation, the stupidity, the discrimination against this minority group or the women or the blacks or whatever, if you don’t do it, who is? If you don’t pick up the needle from the street, some kid is going to step on it and get AIDS. Who will? And so leadership is about doing what has to be done to break down the barriers. And so now there’s the difference between being a leader and engaging in leadership.

Michelle Merker: Right. Absolutely. I’m going to stop you again. Let’s take another break.

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