Why Emotional Energy Is the Real X-Factor in Scaling a Business (Not Strategy)

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The Vault Unlocked 1h 4m 1 speaker 8 chapters transcribed 6 hours ago
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What is holistic value creation and why does emotional energy matter more than strategy?

Twenty two percent of pre-tax profit every month handed back to every employee proportionate to their income. Not a bonus program, a philosophy. Lee Benson ran that philosophy through a company he took from zero to a hundred million dollars in aircraft parts of all things. Zero outside investors sold it for more than double the multiple anyone in that industry gets. But money's the easy value to create. The two Lee spent decades chasing are harder to measure and impossible to fake. Emotional energy and connection. He calls it holistic value creation. In this one, we get into why $166 billion a year gets spent on leadership training that changes nothing. And why Lee thinks the biggest shortage on the planet isn't talent.
It's leaders who are capable and moral at the same time. This is the vault. Let's unlock it.
Kayvon Kay 1:07
Lee, welcome to the show. Good to be here, Kayvon. Thank you. I'm see, I'm looking at watching you for those that can see. We got music uh behind you, got like a full stage behind you. Tell us a little bit about that. I do.
Lee Benson 1:20
Music's been part of my life for a really long time. I started playing guitar so young, I don't remember not knowing how to play. Played over a thousand shows in the first half of the 80s in a rock band playing guitar and singing, and I still play music today. So I'm actually sitting in my home music recording studio. It's this really cool 4,000 square foot building where I still have music projects I work on. I'm actually in the middle of writing an instrumental uh guitar album right now and a lot of fun.
Kayvon Kay 1:49
Love it. But that's not what we're here for today. For today I know we were talking about earlier before was this idea about holistic value creation.
Lee Benson 1:59
Yeah, I I've built eight different companies from scratch. I'm currently CEO of two businesses. I'm invested in a number of others. Um I coach about thirty CEOs in my execute mastermind groups. And everything we do is about holistic value creation. It's um material, it's emotional, it's it's spiritual value creation. So materials important. We need cash flow. We need we need all that profit. We need it to be able to grow. Um emotional energy to me when it comes to value creation, it's the scarcest commodity on the planet. Um, it supercharges everything else we do. I think it's the X factor for leaders. It's literally the X factor for all of us. And then spiritual value creation is about connectedness. And then all of my businesses, I've always really made an intentional point to make sure we had programs where people had the opportunity to really strengthen relations.
Lee Benson 2:49
relationships. And my companies that I personally started from scratch have ranged from 10 employees to um about 540, I think was the biggest one. And and these programs worked amazingly well. In fact, the biggest one I sold in twenty sixteen went from zero to a hundred million dollar business, sold it uh it was in the aviation aftermarket. So imagine repairing, overhauling, manufacturing aircraft parts to keep aircraft flying. It wasn't for new manufacturing, it was it was maintenance to keep them mission ready at any point in time. But went from zero to a hundred million dollars, very profitable business, and sold it for a twenty one point six X multiple of EBITA. And that's because um of the way we led that business, the way I led the business.
Lee Benson 3:33
I own the majority of stock, I cr I controlled it. The only employees that had equity were ones that earned it over time. There were there were no outside investors, didn't never took a dime of anything. Uh, you know, to to grow this thing, very capital intensive business, but managing through this holistic value creation lens, which evolved for me over the decades, I would say, um, helped me create so much more value in terms of the value of the business, but also what it felt like to work there, what it felt like for me. Like the harder it got, the harder everybody laughed. It was amazing.
Kayvon Kay 4:06
Wow. All right. Well, the vault unlock is all about this. And and I'm excited because I want to actually go behind this and I'm not going to let you uh get away with uh the surface level stuff.

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