Ильдар Хусаинов – The power of freedom (страница 29)

Most of us don’t have an inherent tendency towards efficiency. That’s why marketers around the world easily explain why many women dream of buying a handbag that costs 150,000 rubles.

One important thing everyone should understand is how humans are wired. This is crucial because knowing human nature allows for effective management of various processes. I consider myself a kind person, but I’m also economical. For instance, I recently bought my mom a three-year-old used car with low mileage – only about 30,000 kilometers. A new Volvo like that would cost around 10 million rubles, but I found one with low mileage for just 5 million rubles. I believe the price difference is insignificant since the car is practically new. It’s all about finding that balance. I chose a Volvo, a premium brand, without regretting the expense. Of course, I could have bought something much cheaper, but it’s important to feel that balance. For me, it’s essential to spend money wisely. If I decided to gift my mom a good premium car, why not do so by buying a used one at half the price? She got an excellent vehicle that looked brand new.

However, when it comes to business, I fight for every ruble. I don’t waste money unnecessarily, neither on myself nor on anything extraneous beyond my personal needs. My main expenses are family needs and helping my parents. If I were living alone, I’d probably be in a small one-bedroom apartment and using public transport instead of driving a car. That aligns with my internal beliefs.

The question arises: how can we instill this same frugality into our systems on a philosophical level?

In this context, we have three main categories: greed, stinginess, and frugality. Once someone asked me, "What’s the difference between greed and stinginess?" I replied, "A greedy person thinks only of themselves without considering the needs of others. Stinginess is when you set high standards for yourself while also striving for savings for everyone." Frugality is the art of finding the golden mean between system development and resource conservation. If frugality could be expressed mathematically, it would yield a formula:

In companies, and more broadly, greed refers to the inability to share. In my view, stinginess is not just about being economical; it’s about using resources wisely. Frugality pertains to business: the ability to effectively conserve resources and energy while minimizing waste.

These terms may seem similar, but they are actually quite different. They are often confused, but for now, let's not delve into their semantics. Simply put, in business, the return on resource investment plays a crucial role.

I am a big fan of the concept of lean manufacturing. I’ve participated in internships, attended training sessions, and read all the books I could find on "Kaizen" and "Six Sigma" methodologies in the service sector, lean manufacturing, and how these principles are applied in Toyota factories. However, in my understanding, lean manufacturing is more about growth than simply optimizing current operations. There is also strategic frugality, which is less frequently discussed. Interestingly, it requires a more intensive use of resources.

For most people, the term "frugality" is associated with minimizing costs to achieve results. But I always teach my employees: "We need to achieve greater results with the resources we use. If you can achieve even better results, then use more resources."

The effectiveness of this approach is clear. We accomplish more without complicating processes. I will continue to develop this topic in the next chapter.

Chapter 15. «Difficult» and «Time-consuming» are the 2 Key Words in Business

At the beginning of this chapter, I want to share my two fundamental principles: "difficult" and "time-consuming." If you follow these principles, it often leads to a dead end. "Difficult" and "time-consuming" are the keys to success. Why are they important? Because they relate to the passage of time.

Time is a delicate matter. In the moment, we don’t feel it, but we notice it from a distance. We perceive time from afar because only then does it shape our understanding of processes. Only over the long term can a person systematically comprehend what is happening. Invisible processes are similar to time: they don’t manifest immediately, but they inevitably yield results.

People want to see and understand everything right now; we look at the clock and only see the current seconds. Real changes become noticeable only over time. This is the paradox of time. I always say: "Difficult and time-consuming" – remember this.

Regarding complexity in management approaches and tools, I have my own theory. I believe that complexity increases with the passage of time. This is the law of increasing entropy. Any increase in volume leads to greater chaos within a system. Our brains always strive for simplification because many thought processes are patterned. We don’t want complications; we seek simplicity.

The authors of the book "How Google Works" reveal some secrets of the company’s development and share an interesting anecdote. During interviews, candidates are first asked, "What complex problem have you solved?" It’s not just about solving a problem with the first available method; it’s about thinking, designing, analyzing, working step by step, systematizing everything, implementing solutions, managing deviations, and doing it better than others. Only those who can answer this question achieve real results.

This applies to life as well. Some people prefer to go with the flow, avoiding responsibility and living in the moment. The same goes for companies. Everything I will write about next – culture, entrepreneurship, processes – is difficult and time-consuming. Good things don’t happen quickly.

Chapter 16. About Chaos and Order

Chaos and order are fascinating and sometimes interconnected processes in business. A common mistake when establishing systems is misidentifying the points of equilibrium. In entrepreneurial culture, chaos isn't always necessary; sometimes it's crucial to create clear order and structure. However, within these systems, it's critically important to define the degree of freedom.

Consider a physics example: in solid bodies, molecules occupy a very small percentage of the volume, with vacuum surrounding them – this represents space for freedom. Even in the hardest materials, molecules take up minimal space. If we could compress all the vacuum in the world to the density of molecules, you wouldn't believe how tiny our world would become.

When creating systems, it's essential to understand what space for freedom remains. Let me share a story that illustrates this idea. In the real estate sector, the key is structuring information. The company "Etagi" was one of the first to take a step toward transparency for clients. In the early days, no one published apartment listings online. Realtors would say, "Come to us; we have all the apartments," but kept the details secret.

We decided to change this approach and made information accessible to everyone. The challenge of translating listings into a shared platform was that each specialist feared losing their deal to another realtor. Realtors argued and insisted that their listings shouldn't be visible to everyone. Competition is important in entrepreneurship; it establishes clear criteria for determining who is right and who has the authority to speak. But if I start deciding who is right and who isn't, that's not correct. It's vital to discuss and collaboratively determine whether an idea is valid. This approach fosters a strong and sustainable long-term system.

My arguments for making property information accessible were straightforward.

First, if we don’t do it, someone else will. Other services will emerge that provide this information on their websites.

Second, if all we’re selling is the address of a property, we won’t last long. If our goal is to build a substantial business while focusing on closed information, we won’t get far.

Third, clients want this information. A business that doesn’t prioritize customer interests is doomed. If a client needs information and we withhold it for our own reasons, we've already lost.

Fourth, it will make our work easier. We’ll be bothered less. I told realtors they should value their time – there are countless calls from people who just burden them with unnecessary work. If someone isn’t genuinely interested, they shouldn’t call. This way, we save time for both the realtor and the client.

Everyone agreed that this was the right direction. We undertook a comprehensive effort and built a system where property data was organized into a clear and understandable structure for everyone: it included well-unified descriptions, up-to-date information, and high-quality photographs. Presenting our properties in this way became our competitive advantage. Clients turned to us because they couldn't find comprehensive information about apartments anywhere else, especially with all options presented by a single company, in an appealing format, and with maximum transparency.