You. Thank you for being here.
Are you excited about
Billie Jean King a little bit later
this afternoon.
I am so stoked to see Billie Jean
King.
So I want to thank our keynote
sponsor
for the Billie Jean King
Keano segment
and that is fek grid.
Figure it out.
Yes. Thank you.
Great. So we have
Roxy and Maya here to share
with you some state of the industry.
They've been doing research
and have some amazing data to share
with you. Come on up Roxy Borger's
a former yoga studio owner a
certified
yoga instructor.
She's the queen of MINDBODY
University
having been at 50 MINDBODY
universities
and she has a degree in mathematics.
Maya come on up.
As a former college athlete
if you couldn't tell by looking at
her
she's a certified fitness instructor
she
has aPh.D. in cognitive science
from UC San Diego right down the
street.
And she leads our MINDBODY research
team.
Give them a big hand please.
Data.
Data.
Data.
If you know anything about me
and Roxy you know that we love data
and we have had so much fun putting
together this presentation for you
guys.
We've looked broadly at the market
and market research we've looked at
our
own internal customer data
and we've even looked at some
consumer trends.
So we have lots of great content.
We're going to zip through it.
So let's talk about the wellness
industry.
In 2015.
The global Wellness Institute
characterized it as a three point
seven
trillion dollar global economy.
What's really exciting is that in a
couple of
weeks the global Wellness Institute
is going
to be publishing their new study.
So for those of you guys who like to
geek out on
that stuff look out for it
and we're hoping that we're going to
see that even
taking up higher at about 4
trillion dollars to put.
To put that into perspective that's
about
a fifth of the size of the
entireU.S.
economy. So the market's doing
great.
Here's how the global Wellness
Institute
characterizes the wellness industry.
So it's comprised of everything from
fitness
and spas
and thermal and mineral springs
and you can see that for instance
that fitness
economy is 542 billion
dollar global economy super
exciting.
We're also seeing strong growth
in theU.S. fitness industry.
And for instance the yoga Pilate's
industry is projected to grow
at a rate of four point nine percent
through 2022.
Gyms and health clubs are projected
to grow
at about 5 percent
and we're seeing specialized
concepts like
boutique fitness franchises are
projected to grow nearly three times
that rate.
So lots of growth.
Okay.
beauty and wellness wellness
industries
are flourishing as well.
So salons
and spas projected to grow into
the future.
And then these specialized concepts
like
blow dried bars
and massage franchises are
projected to grow at a high rate
that's not showing up a blow dry bar
25
percent. Pretty exciting.
Yeah.
So when we look at our own customer
data
what's really exciting is that
theU.S. GDP you can see kind
of year over year growth rates are
quarter
quarterly growth rates.
Our own customers are class based
businesses like our fitness
businesses
and our biggest businesses are
doing better than average businesses
in theU.S.
So that's awesome.
Yeah.
So.
So. Let's talk a little bit more
about wellness in
America.
Well so this is you may remember
from yesterday
it's the 7 dimensions of wellness
and over the summer the MINDBODY
research
team had the opportunity to look
broadly at theU.S. consumer
wellness and how consumers are doing
on their own seven dimensions of
wellness.
So we conducted a survey of over
3000
Americans
and we asked them about how they're
doing on
their 7 dimensions of wellness
and here's what we discovered.
A lot of opportunity right.
So what's cool is that the industry
is
growing and yet consumers
have so much opportunity to continue
to improve their wellness through
engaging
with Llama's providers.
So 68 percent of Americans
don't prioritize fitness that's
a huge opportunity for us to do even
more.
The cool thing about participating
in one piece of wellness
or one dimension of wellness is that
there's
benefits to other ones as well.
So one of the cool things we learned
in our research is that
people who participate in group
exercise
are 27 percent more spiritually
fulfilled than those who do not.
And that may not be a surprise to
anybody that
owns a yoga studio
or across that studio that the
people who come to your facility
are more engaged in things
like closer relationships
they're more comfortable expressing
feelings
they enjoy their life more
and more.
And so it was neat to see that
reflected
in our data.
So we also asked Americans having
engaged
with wellness providers.
We found that 63 percent
of Americans are
engaging with beauty service
providers.
39 percent engaging
with integrative health providers
and 26 percent of Americans
are going to group fitness.
So lots of opportunity
and only 16 percent of Americans
see wellness providers
and all three of these different
modalities.
So what we take away from this data
is
that wellness providers.
I need it more than ever.
We also have the opportunity to look
at someU.S.
consumer wellness trends so this
is kind of what's hot what's not in
the industry.
When we looked at people that go to
group fitness
on a regular basis we actually found
that yoga is the most popular
group fitness.
Yeah.
We learned that 28 percent of people
that
do group exercise are going to yoga
at least once a week.
Very accessible to all age groups
and age categories.
So yoga is high.
You guys may also see if your you
know your specialized studio you can
see some
of the trends that relate to you.
Brody you guys may
remember we talked about the Bogey's
last
year. These are men who go to yoga
and what we're seeing that's really
awesome is
that that broke population continues
to grow year over year.
So this year we saw 30 percent of
men engaging 30
percent of our yoga practitioners
are men.
And it's up 7 percent from 2016.
The really cool thing about those
Bogey's
is that they're very engaged.
So 40 percent of these men
who practice yoga are going four to
five
times a week or more.
We also learned across different
age groups and age categories that
millennials are particular
and particularly interested
in high intensity interval training.
So you can see that 38 percent of
millennials are interested in things
like boot camp
and cross fit.
And you can see some of the
differences in
the different age brackets
depending on which modality you're
most
interested in.
So. Spot treatments.
We asked people what's hot
with spa.
We learned that massage is the most
popular
spa treatment.
We also learned facials are flying
so people who go to spas on
a regular basis 38 percent
of them are interested in trying
facials
and we looked at some of the age
differences
with our agenda mirrors
those of the 18 to 25 year olds
they're interested in mud
and detox body wrap services
and hydrotherapy.
We also looked at some differences
between
men and women found some interesting
things.
So in the.
Women category we found that
with regards to those integrative
health
and wellness services women seemed
to be
more interested in relaxation
services
like massage and hydrotherapy.
And men are more interested in these
pain
management modalities
like chiropractic acupressure
and acupuncture.
We also found that men in general
are using these integrative health
services
more frequently than women
and their spend is a little bit
higher.
So 32 dollars on average a month
versus 24 dollars.
In terms of some fun facts.
We discovered that 3 percent of
women
are using Barbar services.
So potentially for specialized
haircuts
and things that can't be done in a
typical
salon.
And we've learned that 16 percent of
women
want to try permanent make up
as another fun fact
we learned that 6 percent of men
say they're interested in Lasch
extension.
So working
maybe working on their plumage
yes
and 23 percent of men are interested
in trying manicures
and pedicures.
I know that my husband likes to come
with me when I get my pedicures have
a little pedicure day.
Great. So it's all about
the revenue. So we wanted to see how
much
Americans were spending on wellness.
So we asked people how much they're
spending on wellness
activities in our
consumer survey.
And this is just at wellness
providers it's not for things like
retail
like yoga pants
and things like that is really just
for the service
offerings.
So what we learned is that allU.S.
consumers are spending on average
about eighty
seven dollars a month on wellness.
When we look specifically at people
who
work out one time a week
or more you can see that that ticks
up
a little bit to one hundred two
dollars a week
or excuse me a month.
And then when we looked at us
consumers
who attend group fitness we see it's
going up even more so 172
dollars a month on
wellness.
And finally when we looked
selectively
at our MINDBODY app consumers
here's what we see.
277 dollars a month.
It's not showing up
but it's 277 dollars when
you add up all of those categories.
And what's really interesting
is that that participation in group
fitness is correlating
with higher spending across all
wellness
modalities.
So not just fitness
but beauty and integrative health
are
MINDBODY app users are spending a
lot
on their wellness and wellness care.
So Roxy
and handed up to you for some
industry benchmark.
BreitBurn.
So first I have to have my Blake
moment. I just want to thank you
Carrie for what you're doing in
Detroit.
I grew up in downriver Detroit
and but I've lived in California for
15
years and my heart is still there
and I've struggled to bring wildness
to my
family and friends who are still
there and live very different life.
Sounds like it's very easy to live
the lifestyle
and the central coast of California.
It's a little harder to bring it
back for me
for some of the people that are
really.
That's just not part of their habits
so
I'm just letting you know that what
you're doing
like in deep in my belly
and my soul like I'm really grateful
for what you're
doing and I'm going to come visit
you when I come
to Detroit in October.
So I'm sorry you had to make all of
you look.
Like that's my that's my home
that's my peeps. So anyway
now you get to hear more about data.
So first I want to take a moment
to talk to you about consumer
booking trends.
Actually even before that I feel the
need to say
those feel free to keep taking
pictures
of the slides but you'll be able to
download a PDA
for this presentation.
For those of you who wanted to know
about
it I was told I hope
it. I hope it's true.
Let's first talk about consumer
booking trends.
So this story here
is that online bookings continue
to grow
but they're not as much as I think
they
could be.
So the orange bars you're looking at
that's the amount of online that's
the
amount of bookings in the MINDBODY
platform
that have been happening over time.
So more and more bookings are
happening through MINDBODY.
The red line is the amount of those
that are
happening online
and it's up 40 percent
and it really has only been growing
by about
1 percent per year for the last few
years. So I think you guys
have a huge opportunity
to better encourage your customers
to go online.
So I know we're doing better now
than we've ever
done when I first talked about
online
booking and you like 10 years
ago you guys were like I'm not doing
that.
Why would I do that.
And frankly the experience probably
wasn't
that great then either.
Now it's so beautiful
and easy.
So if you're not sure about
your online experience either in the
app
or through your Web site you can
stop by the
product playground we have a
makeover booth there
they'll help you through the
MINDBODY app.
Make sure your app looks great.
It's optimize everything works
really well.
So we still have a ton of
opportunity there
and you can remove those barriers
to entry for your prospective
customers
and your existing customers.
And we know social media
is hot right.
So.
So this is like a no brainer that
we are getting a ton of new
leads and discoveries from social
media.
The top categories are Facebook
Instagram and Pinterest.
But the two things that are most
exciting
to me about this data
and this is from Google is that
of those people that are finding
your business through social media.
Half of them are actually making
purchases.
So the leads that are coming to you
through
social media are warm leads they're
likely
to make purchases.
And why don't we make that process
easier for them.
So MINDBODY has the ability for you
to completely Nesson integrate
your Instagram booking so
they can book right within Instagram
they can both write within Facebook
they
don't have to leave.
Thank you.
So so you can make that experience
easy and sexy
and they don't need to leave the
social media
platform.
So you should do that.
You haven't checked out MINDBODY
promote that
to our functionality that does that.
That's also a dynamic pricing enter
offers.
We have a booth that will talk to
you about that too.
So check it out.
Hands down like this is like the
story of my life for any of you
who've heard me
speak already.
I've been shouting from the rooftops
for
ever that retention is the biggest
challenge we face in our industries
and it's very easy to forget that
because you guys are having to fix
broken
toilets and deal
with subs and deal
with all the things that are being
thrown
your way. But really the
even if you move retention a tiny
amount it's saving you money.
So I think retention
is a huge opportunity
and this is what the data is
surrounding
retention. So year over year
retention
is about 30 percent
and I was really intrigued this
year.
What's different what we looked at
differently is
we wanted to understand appointment
based businesses
versus class based businesses.
The bottom line is both of those
industries. Everyone is really
only retaining one third of your
customers.
Year over year
and this is a very loose definition
of retention meaning of all the
customers who made one purchase in
2017.
At least one did they make at
least one more in 2018.
That's just two purchases
and only we're only retaining 30
percent
of those. So if you can get this
percent
to move even 5 percent
you're going to see better
profitability
in your business you're going to see
more community you're going
to see more customers coming back.
But we also wanted to give you a
little big
hairy goal to shoot for.
So we actually looked even deeper.
So what we did was look at the year
over year retention of all of our
customers.
And then we looked at what the top
10 percentile
was. So this is your be
big very aggressive goal for next
year. So I want you to come up to me
at bold next year
and tell me how much you change your
year over year
retention.
This is a good goal to shoot for
this
is what the top businesses are
achieving in MINDBODY.
So 56 percent
or 59 percent 56 is Kos's
59 as appointments.
So are you guys going to improve.
You learn so much at Vold right.
So my your brains are stuffed I'm
sure.
Okay. So I I'm a teacher.
I've been teaching
with MINDBODY
and working in your industries since
2005.
I owned a yoga studio for five years
and my my job is to compile
education for you guys that really
works.
So I just want to take a moment to
give you a little
light. So what can you do to improve
your retention
and I propose that if you really
focus
on these three things over the next
year you
can move that retention.
And first I'm going to start
with the foundational thing which is
marketing.
You have to be filling the funnel
and it's not just throwing money
out there and it's not just posing
to social media while you're out
bolds.
I hope you do that too.
But I want you to do
marketing that you're measuring the
results
from. I want you to look at why
you're spending your marketing
dollars
and energies on in which one is
providing
the best results and do more for the
hatch.
And you know MINDBODY promote can
help you
with that. With all the marketing
features that
it has.
Second it's pricing.
I think we should have a methodical
intelligent pricing that is
rewarding the committed customers
is making it easy for customers to
make decisions to come
into your business.
We're meeting the customers where
they are if
they're a sporadic user of your
services that means they
might use dynamic pricing
or a drop in rate
but if they're really committed they
get
the best rate on a per session
basis.
And then last but not least sales
and so many of you guys might of
just squirmed
seeing that word on the screen
right.
You made a lot of us
don't feel comfortable selling
our life enhancing services.
That's kind of crazy isn't it.
Like you should be shouting from the
rooftops
what you're doing
and how great it is.
So what do I really mean
with sales. I mean hey
if you sign up for our membership
before your intro offer expires you
get 20 dollars off per
month for a year.
I mean that's kind of aggressive.
But what is that.
That's an incentive to get
those people to stay
and to keep people on.
Right. So if you want any more
information
on that check MINDBODY 1 our
community our online platform out.
Check out MINDBODY university
events.
MINDBODY University on demand we
have tons of content
surrounding all these topics.
So next I wanted to
talk to you a little bit about sales
trends
really wanted to better understand
the types of purchases that are
happening
in your businesses.
So we looked at sales
mix break down
and what I was really excited
to see is that fitness businesses
in particular really embraced
selling memberships
and multi session packages.
And this is really the most
purchases
other than single solutions that
I've seen
yet since we've been running the
data.
So great job fitness businesses
and getting people to buy their
packages.
Why is that cool.
Because you remove barriers to entry
for those people that come back for
more than one session.
So that's why I like that.
And then we looked at beauty as well
so beauty.
You know no surprise it's the
opposite
scale. Their beauty services
see 90 percent 91 percent
of single sessions being purchased.
So maybe there is some opportunities
in beauty and integrative health to
encourage
repeat purchases
or least another visit.
Right.
Last but not least.
I just want to share this slide
this graph.
This is data surrounding expenses
with you. So this is actually
fitness studio expenses
you guys. Yeah I heard you
are a little distracted.
It's also a friend of mine so that's
OK.
So fitness studio benchmarks.
These are the top fitness studios
using
MINDBODY
and we finally just asked what are
your
expenses.
And this is what they are so we just
wanted to
share that with you.
I could literally stand here
and talk about this slotted
with you for about four hours.
But I have about a minute.
So I'm just going to say a few
things about the expense side
which we don't often get to talk a
lot about.
One I want to say you know payroll
biggest expense you have.
And I want you to reward
your hardworking dedicated
team members
but you also need to pay them based
on what your business is currently
earning.
And so I just want to make sure that
you
know think about that
and if you're struggling
you minimizing your expenses
can be a way to like free things up
and make your bottom line a little
bit.
Better.
Second thing I want to point out is
owner draw owner draw is often not
listed in the fixed expenses.
How many of you guys aren't paying
yourself right
now.
Some of you are in a lot of you
probably
are and you're not willing to raise
your hand just feel
a little guilty.
I didn't pay myself the first two
years
I ran my yoga studio.
It's a little painful isn't it.
And I really just want to encourage
you
not to do that forever.
OK so that's my letak Please
I'm your. I'm like your business
coach your mom.
Don't let that go on too long
because
if you let it go on too long you'll
get
burnt out you'll get resentful
and you won't be in business
forever.
I want you to be in business forever
ok.
Or as long as possible.
OK.
We all good that.
I'm going to say OK again I don't
know.
All right. The last thing I want to
point out is
marketing.
So a lot of times when budget gets
tight we pull money from marketing
because it's an easy thing to pull
money from.
And so last
but not least don't pull money from
your marketing.
You always have to be reinvesting to
be bringing
in more new customers so that we can
make
up for that retention challenge.
All right so we're moving on to
wellness
and technology next.
Thanks.
I always loved working
with Roxy because she just brings
the data home.
She really helps you understand the
insides
and how you can apply them to your
business.
So definitely enjoy working
with this lady.
OK so the last thing I'm going to
talk about
won't take too long
but I basically want to talk a
little bit about some
technology trends at the end of the
day.
MINDBODY is a technology company
and we're here to help you really
take
advantage of the best tech that's
out there
and think about how to apply it to
your business
so you can continue to improve
stay relevant
and make the best use of
your dollars.
So one of the fun things that we did
in the prodder playground this week
is we
were running a tech trends survey.
So for those of you that
participated.
Thank you.
It's a small survey
but we wanted to know from you.
What is the most important
technology.
Where do you think the industry is
headed.
Where are you going to be investing.
What are you investing in now.
And so these are some of the things
we asked
about everything from email
marketing automation to wearables
live streaming video
and here's some of the things that
we learned from
you guys.
We learned that some of the most
popular
tech people are currently using our
e-mail automation text
automation
and social media scheduling tools.
So social media is hard to keep up
with these scheduling tools can help
know kind of keep that a little bit
more manageable for your studio.
We also learned that people in 2019
are planning to invest in those
social
media scheduling tools
things like live chat which can help
engage customers on your Web site
and on your social media
streaming and pre-recorded videos
something people were very
interested in
and then also chat box.
What was interesting is that we also
learned
that there's a portion of you that
think
chat bots are just hype so
we'll have to see where the industry
goes.
That's all we have for you guys
today.
If you want to chat.
And. I'd love to watch them.
Weeks on Wired.
And.
Tell everybody
there's so many delightful things
about Bauld it's impossible to
list but one of the most delightful
things
is the chance to interact directly
both
your opportunity to interact
directly
with the MINDBODY team people that
are
otherwise typically voices
on the phone
or someone writing an email
or a chat response to you.
And our opportunity to interact
directly
with you.
And since we started
doing this more than 12
years ago with MINDBODY University.
One thing has come through
repetitively
from our customers from you
and that is you understand
how difficult it is to
build a great business.
And it begins with a great team
and I hear over
and over from you.
And you've said it to me this week
wow what an amazing team.
So can we just take a moment
and give a hand to the MINDBODY
team.
Thank you. They continue to blow me
away
and I'm incredibly proud of them.
So the other thing that I hear is
the question how did you do this.
How did this happen.
And other than just sheer luck.
I think I have a few thoughts that
might be
helpful.
So let's talk about what constitutes
a great
business.
Most of what we talk about in
MINDBODY
University and here at Bold is
how to make a good business a good
business is
where you can provide
experiences to people that
improve their lives.
In which they will pay you money
for.
And.
Hopefully more money than it cost
you to deliver it.
And there's a lot more people out
there.
And it's a sticky habits.
All the things that they were just
talking about.
That's a good business you've got to
start there if
you don't have that you're not going
to
get all the rest.
How do you make a great business.
Well here's some thoughts on this.
Number one it is about leadership
and every one of you here in this
room.
Is a leader.
The minute you decide
I am going to take that leap I'm
going to leave
this job I've had.
I'm going to take this large
amount of my net worth
or perhaps see all of my net worth
I may perhaps borrow money from
family
and friends.
I may take on debt.
To hang out my shingle.
To help other people lead healthier
happier lives
at that moment. You just said I am
a leader.
And understanding the principles of
leadership
is absolutely essential.
Number two great businesses
have a purpose greater than
themselves.
It's not just about making money.
We need to make money.
Businesses are designed
to make money.
But if that's all it's ever about.
It's not sustainable.
It's empty
and some of the most unhappy
professions
in the world are the professions
where it
really is just about making a lot
of money.
And perhaps you can
but you find people in those lands
of work routinely
depressed
and burned out
and seeking something more.
You guys do the purpose thing in
spades.
That's what inspired us.
It's what got Blake
and I to take this flying leap off a
cliff.
20 years ago
and embark on this journey.
Third.
This notion that we have to evolve
we have to adapt.
We have to be creative.
Yes free yoga is
a 3000 year old practice.
But the method of delivery has
evolved enormously even over the
last
ten years.
Yes. Joseph Palladio is
created Pilate's
and it's a magnificent practice that
heals people.
It has changed lives.
And if you want to have a successful
Palladio business you'd better
be evolving and adapting because
people are adapting
and creating all the time
and we could say this about every
business year
and you're in the salon industry the
spawn
history you're doing one of the
high intensity interval trainings.
This is absolutely essential.
The biggest failure point I see in
entrepreneurs
is they get in love
with their own ideas.
Now you need to be in love
with your principles.
But not in love with your ideas.
There's a difference.
Principles are enduring.
Principles are important beliefs
that drive what you're doing.
And principles need to be mirrored
in your team.
In alignment around core values.
But the ideas.
You know what I'm going to try this
new
intro package
and is going to do this. Yeah try
it.
Your business as a laboratory
encourage you
to treat it as your own little
laboratory
that you can try ideas
and solicit ideas from your team
members
and from your customers to tell
you what you should do next
and see what's happening
and what's working out there.
But don't get into in love
with them.
Because the market will speak the
truth.
Your customers will speak the truth
and you have to respond to that.
Let's talk about leadership.
So you heard that I was a naval
officer as a
nuclear submarine officer stationed
on
the SS since 721 us
a Chicago station
and Point Loma about five miles
away over there.
It's an extraordinary experience to
be back here now
and look back and see the scene from
my hotel room of
those navy ships out there.
Deeply emotional for me.
So I existed in the laboratory of
leadership
but up Blake I'm getting a hook
wardrobe
malfunction here.
I'm going to help you
get your back
and you see.
Wow.
Love you rather.
Yeah.
I mean you can't buy that.
He's been covering my ass
since I was 14 years old.
He got me out of more than a few
scrapes.
OK.
All right.
Leadership.
It's essential on there are books
written
about this.
And I've existed
in some really intense leadership
environments not the least
of which is MINDBODY.
Here are some thoughts on it.
Number one to be an effective
conscious leader you have to know
yourself.
What do you stand for.
What do you want your life to be
about.
What do you want people to say about
you
after you're gone.
If you could write your own epitaph.
What would it be.
I mean Michelle Obama she knows
herself right.
That's what makes her so powerful.
You can tell what she stands
for.
And everyone around her
and now all of us know.
What she's about.
And you got to know this.
It's a lifelong journey.
And in a sense it is never
complete
but there comes a moment.
A magic moment.
When you can get yourself out of the
way.
Think about the most impactful
leaders you've ever experienced
in your life.
That teacher that trainer
that coach that Guru.
That adult mentor.
Your parents if you're really lucky.
Think about.
An iconic moment you had
with them like some memory of an
interaction
where they said something to
you that changed your life.
That they saw you.
In that moment.
It wasn't about them was it.
It was about you.
You felt completely seeing.
They knew what you had.
They knew they knew what you could
offer
to the world. They also knew where
you
needed to make some progress
and where you needed to make
breakthroughs.
The biggest pitfall I ever see in
leaders.
Is when they can't get outside of
their own heads.
When it's they're wrapped up in the
pain
they have from childhood
and what went wrong
and the person that insulted them
yesterday
and the fact that this isn't really
where they want
to be in their lives and their
frustration
with other people.
And the biggest mistakes I've ever
made in my life
as a leader are when I'm wrapped
up in my own head.
So get out of your head be
about them the person in front of
you.
Leaders are not here to be
served.
Leaders are servants.
Leaders exists because
groups of people need
leadership.
I mean it's such a simple
and profound point that
team is why we have
a leader.
And there are cases like in software
development
there's something called agile scrum
where you can have
a self directed team
that works together
and iterates their way to the
outcome.
But in most cases groups
of human beings require leadership.
And it is a it is a service
that you're giving to the people.
I am in service of
every member of the MINDBODY team.
And all of you.
Effective leaders conscious leaders
are
by definition of conscious.
What's the opposite of conscious
unconscious
unaware of what's happening.
Not picking up on the subtleties the
the visual clues
not curious about why
did this person react in this
interesting way
you know.
Wow that was really strange what
they just did
a wonder why.
Rather than being triggered by
someone cuts
you off on the road you owe them.
That it's. Really in a hurry.
I wonder what's going on
with him.
That's not how I usually react
right.
It's it's hard to do.
A crazy enormous energy.
And I don't know how you do that
without actually loving people.
Great leaders love people.
Michelle Obama.
Loves people.
I mean you see this love just
pouring out arrests.
It's where she gets this enormous
strength
and power.
So.
Let's talk about.
Purpose.
The most effective thing you can do
is write a purpose
statement for your business.
Why does this business exist.
And some people would
suggest that you kind of get
together
and get a hold working group to do
it for
most of your cases.
I think it should be you
the founders and leaders of the
business.
Perhaps a few people that have been
key with you on the journey to
collaborate
and bounce ideas off us.
But ultimately if you don't know
what you stand for
how can the team possibly know that.
So.
This is our purpose at MINDBODY.
We help people lead healthier
happier lives
by connecting the world to fitness
beauty
and wellness. You've heard this
repeatedly
over the last two days.
And we live.
And breathe off of this purpose.
And then you have to have a line
going around these core
values.
So at MINDBODY.
We actually have had a set of seven
core
values. But recently we
pulled together a team
a group a core values task force to
look
at them again
and refresh how they state them.
And actually for the MINDBODY
team members that are here we only
recently
actually put this last version out
so this is brand
new. These are MINDBODY Karva he's
not
saying these should be your core
values.
They're just an example of what
an effective core value statement
looks like.
Number one.
We are committed to wellness.
We are committed to living the
wellness lifestyle ourselves.
We are committed to improving
the life the wellness of the world
and we are committed to serving you
the wellness industry that is our
why
that's our North Star.
Number two.
We're audaciously achieving this
word audacity
and audaciousness this willing
to take some leaps once in a while
to try things that haven't been done
before
and commitment to actually achieving
number three.
We are humble.
And helpful.
The pathway to failure is an ego
and arrogance because we shut
ourselves
off to growth
and to improving ourselves.
So hopefully you have seen that
energy
in every MINDBODY team member you've
interacted
with this week.
This inner humbleness.
And this just joy that they
derive by helping people most
particularly
you.
Empathy empathy a Surfest
out of this ability to
to feel what other people
are feeling
and to discern
what's going on
with them.
It's a skill some people are really
good
at it.
Others need work
but you know what. It's not a it's
not a gift.
It's a skill
and we can all become more
empathetic.
And lastly consciously
evolving. It's used to say
continuously
evolving and yes we've pretty much
been continuously
evolving.
We wanted to emphasize that this
is a conscious effort.
So these are our five core values
at MINDBODY.
Everything about us your core values
determine who you hire.
You may have the most talented
teacher
in the world sitting in front of
you.
But her core values don't align
with you.
She should not be on your team.
It can cause enormous friction
and damage in the organization.
And as a leader you have to make
those calls
and you get someone on the team
where you Mistick his interviews
sometimes you can miss it
and you've got a value misalignment
right.
You got to make the hard call
because you know
what.
It's not their aspiration to be an
organization
where there's friction where they're
causing problems
but release them back into the
world so they can go find an
organization
that aligns with their values.
Surely that needs to happen
sometimes
and it's one of the hardest things
we do as leaders is letting
someone go.
So let's talk about leadership
and how we think about it.
We think about leadership in
an element of five Cs
and I learned this directly in
the Navy.
Number one we have these
questions to ask about our leaders.
Number one do you know what you're
doing
because if you don't know what
you're doing it's
really scary.
And in the Navy it might
cost me my life
in business.
You know this is hazardous to my
livelihood.
That's competence.
Number two.
Well you know what you're doing when
you do the right thing.
Well you do the right thing even if
it costs
you personally.
When you do the right thing even if
it's really inconvenient.
And we can fake people out on our
character
for a short period of time.
But our true character will come
through
and the people that work for you
and around you they will know your
character.
And when you demonstrate a high
level of
character and integrity.
They will respect you so much more.
Number three.
To care as much about me as you do
about yourself.
I think one of the biggest failings
I see
in the business world is this lack
of caring.
This sense of why expect you to
be loyal to this organization
and give us everything you've got.
And the minute you're no longer any
use to us we're going
to discard you.
There's a lack of compassion a lack
of care.
And it's dis.
It's completely
demotivating to people
number before we you get things
done.
Leaders are here to remove obstacles
now
I'm a science geek.
I love this word. Catalyst a
catalyst
is something you add to a solution
and it causes the elements in the
solution
to come together to create a
reaction
to form a new compound.
And what makes this metaphor really
elegant
is that the catalyst remains in
the solution.
It's not in the compound so what do
we mean
we mean that if you're the coach on
the side of the field
and you see a problem out on the
field you don't
run out there and grab the ball
you're sitting back
and you're looking at what's
happening you're
identifying the obstacles.
And you're removing those obstacles.
That's what leaders do.
And lastly but not least courage.
Do you have the courage to speak
truth
to authority at MINDBODY.
We want an atmosphere we foster
an atmosphere where anyone can
say what they truly believe to
anyone
and most importantly me
and I have Frontline team members
that will come
to me
or or who will write me emails
and say this is what's wrong.
This is what's bothering you right
now.
We love that.
We love that.
MINDBODY It takes courage it takes
real
guts and backbone to do that.
And wow that's amazing.
There's a flipside of courage the
courage
to take responsibility
and to be accountable for your own
performance
and for the performance of your
team.
You see leaders who try to defer
responsibility to their teams.
Well you know they screwed up.
Wait a minute. You're leading that
team.
You pick that team.
You define the outcome of that team.
You prepared them.
That's your responsibility.
Competence character compassion
Kalis
encourage
men.
I can think of somebody who embodies
those kind of values.
As Billie Jean once said we
should never ever underestimate
the human skin.
