Orrin Woodward on LIFE & Leadership

Inc Magazine Top 20 Leader shares his personal, professional, and financial secrets.

  • Orrin Woodward

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    Former Guinness World Record Holder for largest book signing ever, Orrin Woodward is a NY Times bestselling author of And Justice For All along with RESOLVED & coauthor of LeaderShift and Launching a Leadership Revolution. His books have sold over one million copies in the financial, leadership and liberty fields. RESOLVED: 13 Resolutions For LIFE made the Top 100 All-Time Best Leadership Books and the 13 Resolutions are the framework for the top selling Mental Fitness Challenge personal development program.

    Orrin made the Top 20 Inc. Magazine Leadership list & has co-founded two multi-million dollar leadership companies. Currently, he serves as the Chairman of the Board of the LIFE. He has a B.S. degree from GMI-EMI (now Kettering University) in manufacturing systems engineering. He holds four U.S. patents, and won an exclusive National Technical Benchmarking Award.

    This blog is an Alltop selection and ranked in HR's Top 100 Blogs for Management & Leadership.

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Law of Diminishing Returns in Network Marketing

Posted by Orrin Woodward on August 19, 2013

Art Jonak is the founder and creative genius behind the MasterMind Events where the top six-figure network marketers gather to sharpen the entire profession. He recently visited me at my Florida house where we shot a series of videos on the Five Laws of Decline (FLD). These laws were first articulated in RESOLVED: 13 Resolutions for LIFE and expanded further in Oliver DeMille and my NY Times bestseller LeaderShift. Captured within these videos are many secrets to build a culture that endures the test of time.

For instance two of the top leaders in LIFE Leadership (Chris Brady and George Guzzardo) have been partners of mine for nearly 20 years now! And, many others key relationships are over a decade long. This is a direct outcome of producing a culture that has no special deals, a performance oriented culture, and constantly focused on improving. If a person is going to build a community, he might as well build it once and build it right! Learn to build your business and watch these videos to learn how to bond it together through checking the FLD.

Sincerely,

Orrin Woodward

Posted in LIFE Leadership | 14 Comments »

Chris Ashton Kutcher: Build Your Life

Posted by Orrin Woodward on August 16, 2013

I recently received this video on Chris Ashton Kutcher’s acceptance speech. He spoke so truth in an age of lies and didn’t need hours to do so! We need more people learning, speaking, and acting on truth if we intend to build a life, not just live one. This is exactly what LIFE Leadership is – a way to build your own life! I was extremely impressed by what Mr. Kutcher had to say and encourage more people to have the courage to learn, speak, and act on truth. Here is a summary of his talk followed by the video.

Sincerely,

Orrin Woodward

Chris Ashton Kutcher’s Speech Summary:

1. Opportunity – Opportunity looks like hard work. I have never had a job in my life that I was better than and I never quit my job until I had another lined up.

2. Sexy – The sexiest thing in the entire world is being really smart, thoughtful, and generous. Everything else is crap, that people try to sell to you to make you feel like less. Don’t buy it!

3. Living life – Something I just relearned while making a movie about Steve Jobs. Jobs said when you grow up you tend to get told that world is the way it is and your life is to live your life inside the world and try to not get into trouble. Maybe get an education, job, and family. Life is simpler when you understand that everything around us that we call life was made by people that are no smarter than you. You can build your own life that other people can live in. Build a life, don’t live one!

Posted in Family, Freedom/Liberty | 51 Comments »

This One’s For You Dad: In Loving Memory of Orrin H. Woodward

Posted by Orrin Woodward on August 15, 2013

This Ones for You Dad: Loving Memory of Orrin H. Woodward

I was wrapping up my sophomore year of sports at LakeVille High School. Personally, it was another dismal year as I played baseball and struggled all season. (Later, I discovered my glasses were no longer the proper prescription for my severely degraded eyesight, making me as good as blind, but that’s a story for another day.) In sum, my two years of high school sports had yielded intermittent play on a winless freshman basketball team and benchwarmer status on the sophomore baseball team. I had earned my spot on the bench and my self-talk wasn’t helping. Simply put, I didn’t believe I measured up to the level of competition and I fulfilled my low expectations with amazing consistency.

Nevertheless, I loved athletics and when asked to participate in raising money for LakeVille’s sports programs I readily complied. For this particular year, the track coach had suggested a lap-a-thon contest, where people sponsor the athletes for the total laps around the quarter-mile track in an hour. Although I had never run a mile in my life, I felt I was in fairly good shape (since all I did was play sports when not in school) and set an aggressive goal to help the sports programs. Don’t ask me how I arrived at 30 quarter-mile laps in one hour, especially since I had never run more than 2 laps around the track in my life, but that was the goal I set. Further, I rashly proclaimed this goal to every person I asked to be a sponsor of me in the lap-a-thon.

In hindsight, this was not the best plan of attack. For every single person I asked to sponsor me laughed out loud when I told them I was going to run 30 laps. In fact, most of them degenerated into arguments (my people-skills were non-existent) as I told them unequivocally that they could count on me running 30 laps. This only increased the level of laughter and they sought to reason with me and my crazy goal. The comments from my friends ranged from, “Your crazy,” to “The track stars can barely do 30, so you certainly can’t” and finally “Orrin, you said you have never run a mile in your life, so quit embarrassing yourself by committing to run 30!” Dejected, I went home that day with zero sponsors, zero dollars raised, and practically zero confidence in my ability to run 30 laps.

Fortunately, I sought out my Dad’s thoughts on the unfolding saga and received a kinder albeit tentative response. When he was younger, my dad had been an excellent athlete in the army, promoted to be one of the first Green Berets. However, he cautioned me that running 30 laps with no experience would be a painful ordeal. If possible, he suggested I might want to shoot for a smaller goal. Looking back today, with time, experience, and as a dad myself, his advice was right on the mark. It truly was crazy for me to think I could run 30 laps, risking my health, pride, and peace of mind for this absurd goal. Nonetheless, when I explained to my dad how I had already committed myself to hundreds of people, reluctantly, he agreed to support my efforts. He even agreed to attend the lap-a-thon and time my lap pace to ensure I hit 30 laps.

With Dad on my side, I boldly returned to school the next day and announced to my classmate doubters that if they sponsored me and I didn’t run 30 laps, that they would not have to pay the cost of sponsorship. In other words, I would have to pay for everyone who sponsored me leaving me without money or my pride. With this disclaimer, practically everyone volunteered to sponsor me since none of them believed I had a prayer of running 30 laps in an hour without ever having run even a mile previously. I wrapped up the day with nearly $100 (perhaps not much today but around a million dollars for a broke kid!) in sponsorship dollars. Not surprisingly, I became the talk of the high school as people predicted how many laps I would do before collapsing.  In fact, the increasing drama led to higher attendance at the event so they could witness Orrin Woodward go down in flames. Even then, I tended to be a little polarizing. 🙂

With all the advance hoopla, I realized I should probably practice a little before the big event. Accordingly, the day before the race, I laced up my tennis shoes (that’s right, I didn’t even have running shoes) and ran one time up and one time down my street. This may sound impressive until one realizes that my street dead-ended after an eighth of a mile! In other words, I prepared for this grueling hour long run with a quarter mile jog. Yes, I was clueless on proper running preparation, but with only a day left, I didn’t think I ought to do too much. In truth, there was nothing I could have done to prepare my legs for the physical beating they would endure the next night.

My inexperience led me to make another huge mistake. For some reason I put on a pair of sweat pants underneath my running shorts. This forced me to run the entire race while wearing ridiculously sweatpants despite unseasonably warm weather with start-time temperatures in the mid 70s. Nonetheless, although physically unprepared, I was mentally ready. I took the verbal sparring of my friends as personal challenges which helped me focus on the task at hand. I reviewed each of the names on my sponsor list ensuring I remembered the names during the race. This allowed me to dedicate each lap to different people who sponsored me, especially the ones who told me (along with everyone else) that I would fail.

When the gun sounded, I quickly found a comfortable pace and settled into my routine. I even found a song that I played in my head (for the life of me, I cannot recall which one) and matched the beat of my feet hitting the ground. Lap after lap progressed without incident by dedicating each one to one of my many naysayers. The first 15 laps went flawlessly. I felt great and was halfway home with over 35 minutes to go. The two track stars (predictably) were first and second, but the buzz in the stands (probably fueled by my dad’s enthusiasm) led many to ask who was the kid in third place. I followed on the heels of the two track stars lap after lap as the gathering crowd cheered us on. Do divert myself from the increasing pain of each lap, I focused on how I would feel collecting the nearly $100 dollars from each of my sponsors for the sport programs. The second half, however, did not go nearly as well as the first half. In essence, it became a mental game of pain management, choosing to endure the pain of the laps over the pain of defeat.

The combination of running further than I had ever run before, in sweat pants that refused to release any heat, was debilitating. On top of it all, I barely drank any water because I refused to walk to drink and had no idea how to drink and run simultaneously. Thus, my body was severely overheated, dehydrated, and exhausted. Each added lap narrowed my focus to three options – collapse, quit, or continue. As I ran, I heard my internal voice practically screaming at me to quit and admit that my friends were right. Yet, somehow, deep inside I mustered the mental strength to ignore it, continuing to place one foot in front of the other. Another key was my memorized list of sponsor dedications. Their criticisms kept me going when nothing else did. It helped me focus past the immediate pain and onto the upcoming prize. In a word, I simply refused to let this dream die. Although physically beaten, mentally, I was winning.

I distinctly remember finishing lap 29. I was only one lap away from the greatest victory in my young life. Suddenly, from up in the stands, my dad yells at the top of his lungs, “Son you have under a minute left!” Upon hearing the news, my mind and body went to war. Should I just surrender, since its impossible to run a 60 second quarter in my current condition? Or, should I just sprint with everything I have since its crazy to come this close to a goal and miss? Thankfully, I had no idea how fast I could run a quarter mile so I resolved to unleash an all-out final kick sprint! Racing past everyone else on the track, I pushed my aching muscles and at-capacity lungs beyond the breaking point. I feared the gun sound any second, signifying the end of the event, and prayed it would hold off long enough for me to finish the last lap. Just imagine the joy I felt as I collapsed across the finish line for my 30th lap! I was so happy, yet so physically spent that I just laid there with my head facedown on the track wondering why the gun still hadn’t sounded the end of the contest.

The answer wasn’t long in coming. Laying prostrate on the ground, the track coach tapped me on the head, informing me that I still had nearly 4 minutes left. Apparently, the coach had chased me around the track, attempting to get my attention and tell me not to start my final kick. However, I was so focused that I didn’t hear him or anyone else for that matter. I rolled over onto my back and looked up into the stands, trying to understand why my dad had yelled out one minute left. Embarrassed, he explained later that, although the race was supposed to start at 7 pm, it was delayed and didn’t officially start until 7:05 pm. Somehow, my dad had missed the new start time and I lost five minutes on his time watch. My closing kick, in other words, began with 6 minutes to go. Undaunted, yet exhausted, I gathered my composure, stood back up, and proceeded to walk one final lap dedicated to my dad. 🙂 I finished the lap-a-thon with 31 laps and went home victorious, but more importantly changed. I learned a valuable lesson that night, namely, it isn’t what other people believe about your abilities that matter near as much as what you believe. Critics and nay-sayers will always be present in a dreamers life and must be used for inspiration and perspiration, not exasperation. Learn to use criticism as fuel and you will never run out of energy.

Speaking of energy, for the next week at school, I had to hoist myself up the stairs with my arms holding on to the handrail. My legs simply didn’t work. I could barely walk and couldn’t do the stairs without help. Even so, no amount of pain could deprive me of the self-respect I gained from following through on an audacious goal. Furthermore, the collection from my lap-a-thon sponsors was a treat as well. 🙂 That crazy lap-a-thon night was life-changing for me. Indeed, my remaining two years of athletics was drastically different than the first two years as I went on to varsity letter in cross-country, wrestling, and track both my junior and senior years. This culminated in winning the prestigious Garth Yorton award for best male athlete of my senior class. All from a kid who just dared to set a big goal and dare to follow through.

Remember, life is a series of test and no matter how many test one has failed, today is a new day to begin again. My dad and I discussed that lap-a-thon many times over the years. In fact, even after I was in college at GMI-EMI, I visited my dad at work and discovered many of his co-workers knew me as the son who ran the 31 laps. My dad passed away in 2001, but the memories we shared will never pass away. Indeed, hardly a day goes by without my reflecting the many lessons I learned growing up in Columbiaville, Michigan. Thank you dad for investing your time in me. Because you encouraged me to follow through, you had a front row seat in one of my defining life moments. For that I salute you and say – this ones for you dad!

Sincerely,

Orrin Woodward

Posted in Family | 34 Comments »

When the Going Gets Tough

Posted by Orrin Woodward on August 14, 2013

Here is a poem I wrote in preparation for the release of the new EDGE series book with Chris Brady. LIFE Leadership is Having Fun, Making Money, and Making a Difference, learning life-changing principles so we can pay it forward.

Sincerely,

Orrin Woodward

When the Going Gets Tough

When the going gets tough
and the competition is rough
winners lift their game
not for fortune or fame
for self-respect is enough.

Winners will lose
but self-pity is refused
instead count it gain
to learn from the pain
this winners choose.

Find a win in every loss
learn to carry one’s cross
for optimism breeds hope
a winner learns to cope
not negotiating the cost.

Find a loss in in every win
for pride is a terrible sin.
Self-examination keeps a man humble
Pride comes before the stumble
Rise and Fall lesson repeats again.

Secular man devises his schemes
Puffed up with glory in his dreams.
but God’s Elect follow a different plan
life, liberty, and happiness at His command.
Surrender to Jesus and be redeemed.

Posted in Leadership/Personal Development | 39 Comments »

Passionate Pursuit of Purpose

Posted by Orrin Woodward on August 13, 2013

In the summer of 1981, just before my freshman year in high school, I stumbled across an essential life principle – make a game of any skill set you desire mastery in. Has the reader ever noticed how people will play games for hours on end, but seem to find it difficult to remain focused on work, practice, or studies for any length of time? I don’t know why God created people with such a passion for games, but I have learned how to utilize this passion to help a person develop his skills in his chosen field. Simply put, having fun is the only way to develop skills and enjoy the process. In fact, if a person can learn skills while he is having fun, then mastery is practically assured.

For instance, returning to the summer of 1981, my brother John and I developed our baseball skills by creating our own version of baseball using a tennis ball and a wooden bat. The batter lined up in front of our chain link fence (which played the role of the catcher) and the pitcher pitched into the fence and past the batter. This allowed us to play baseball with only two people and not run the risk of breaking windows or bones. I had never pitched competitively, but through playing our game for hours on end, I discovered my pitching velocity and control had skyrocketed. Indeed, my baseball coach asked me how I had learned my skills and I told him about tennis baseball. He chuckled at the creativity of two teenagers, but quickly leveraged my new skills in the pitching rotation.

Reflecting back, I now realize that I never would have developed the skills if we hadn’t developed made it a game. My brother and I would have quickly lost interest if we had just pitching the ball to one another. Plus, gathering full teams and the necessary equipment would have severely limited our playing time. However, when we developed an easy to play two-person game, with only a fence and bat in our backyard, we played until it was dark all summer long. By tallying scores and outs, we created a game that held our interest and made learning fun. This, in truth, is the key lesson. Discover a way to keep score in any area of expertise a person can turn a dull task into an invigorating competition. For when people keep score, the boring practices become exciting games with drama, strategy, and adjustments in victory and defeat.

Using the same principle, I have made practically my whole life a game where I focus on improving my leadership with the goal of helping others accomplish life victories. What a blessing to be living my purpose of leading people to truth through building communities that Have Fun, Make Money, and Make A Difference by providing life-changing information in the 8Fs. Laurie and my life has a scoreboard that accumulates points though the communities and customers of our life-changing information.

If anyone thinks life is boring then I know he hasn’t learned to turn life into a game. When life is a game, one wakes up everyday excited to advance the ball forward through actively growing and changing. Only in this way does life become an unfolding drama of enjoyable competition where one strives against his previous personal best. A life where one stands strong in his convictions in passionate pursuit of his purpose, dreams, and goals. This is a life lived in the zone; a life lived pressing towards the mark!

LIFE Leadership makes business a game. This make the journey fun while we make money and make a difference.

Sincerely,

Orrin Woodward

Posted in Leadership/Personal Development | 32 Comments »

Get Comfortable Being Uncomfortable

Posted by Orrin Woodward on August 12, 2013

Little League Baseball Game

Little League Baseball Game

As a young lad, growing up in Columbiaville, Michigan, I avoided trying new activities for fear of embarrassing myself. Looking back, I now realize I hurt my ability to grow by being so uncomfortable with being uncomfortable with an new field. In essence, the only thing I did was ensure I failed through not even making an effort. I didn’t start playing baseball until fifth grade (even though I should have started in the second grade) because I was afraid I wouldn’t play well. In truth, I only delayed learning the game and gave everyone else a three year head start. Nonetheless, I eventually learned the game and wondered why I procrastinated so long before attempting something new.

I say all of this to challenge the next-generation to get comfortable being uncomfortable. Yes, of course, a person will make mistakes and probably fail in his first efforts in a new endeavor, but that’s just how God designed human beings to learn. For in real life, the test is given first, then the red checkmarks display where we need to improve before taking the test again. One must have the courage to take the test, study the results, and make adjustments in order to improve. By lacking courage, in other words, I missed out on many tests that would have helped me improve as a person, performer, and leader.

To sum up, this is probably the greatest single principle I learned on my journey to personal success in life – anyone can improve in any area if he is willing to take the test, even if it means failing at first, so he can learn what he must improve upon in order to grow and win. So here is my challenge to the reader. What is it that you truly want to accomplish in life? What would you do if you knew you couldn’t fail? Start the activity today and take the first “test.” It is time to get comfortable being uncomfortable for all longterm success is on the other side of one’s comfort zone.  LIFE Leadership helps being with this process.

Sincerely,

Orrin Woodward

Posted in LIFE Leadership | 23 Comments »

Thymology, History, & Leadership

Posted by Orrin Woodward on August 7, 2013

I have been reading several introductions by Joseph Salerno in books by Murray Rothbard. Both introductions are excellent in scope, explanation, and logic. In the segment below, Salerno introduces a concept that Ludwig Von Mises called Thymology – the study of human valuations. Each person is motivated to act by his or her assessment of value placed on alternative courses of action which is why history is not as predictable as the laws of nature. Nonetheless, entrepreneurship and leadership are impossible predictive capabilities of people actions, indicating the need for either a conscious or unconscious competence in thymology.

Mises and Rothbard have taken to the principles of thymology and used them in ascertaining the motives of historical movers and shakers. This, in my opinion, is one of Mises greatest breakthroughs, explaining why men and women behave in history the way they do through the study of what they valued as important. Ideas are the mainspring of all change and when men and women comprehend truth, world-sized change is possible. In contrast, however, when men and women are indoctrinated with lies, living a life of honor and nobility becomes increasingly difficult.

LIFE Leadership has a mission to transform lives through leading people to truth. We do so by building communities of people that Have Fun, Make Money, and Make a Difference by providing life-changing information in the 8F’s. We make a difference on life at a time and the study of thymology helps us understand where a person is at so we can help him get to where he wants to go.

Sincerely,

Orrin Woodward

Understanding the values and goals of others is thus an inescapable prerequisite for successful action. Now, the method that provides the individual planning action with information about the values and goals of other actors is essentially the same method employed by the historian who seeks knowledge of the values and goals of actors in bygone epochs. Mises emphasizes the universal application of this method by referring to the actor and the historian as “the historian of the future” and “the historian of the past,” respectively.  Regardless of the purpose for which it is used, therefore, understanding aims at establishing the facts that men attach a definite meaning to the state of their environment, that they value this state and, motivated by these judgments of value, resort to definite means in order to preserve or to attain a definite state of affairs different from that which would prevail if they abstained from any purposeful reaction. Understanding deals with judgments of value, with the choice of ends and of the means resorted to for the attainment of these ends, and with the valuation of the outcome of actions per-formed.

Furthermore, whether directed toward planning action or interpreting history, the exercise of specific understanding is not an arbitrary or haphazard enterprise peculiar to each individual historian or actor; it is the product of a discipline that Mises calls “thymology,” which encompasses “knowledge of human valuations and volitions.” Mises characterizes this discipline as follows: Thymology is on the one hand an offshoot of introspection and on the other a precipitate of historical experience. It is what everybody learns from intercourse with his fellows. It is what a man knows about the way in which people value different conditions, about their wishes and desires and their plans to realize these wishes and desires. It is the knowledge of the social environment in which a man lives and acts or, with historians, of a foreign milieu about which he has learned by studying special sources.

Thus, Mises tells us, thymology can be classified as “a branch of history” since “[i]t derives its knowledge from historical experience.” Consequently, the epistemic product of thymo-logical experience is categorically different from the knowledge derived from experiments in the natural sciences. Experimental knowledge consists of “scientific facts” whose truth is independent of time. Thymological knowledge is confined to “historical facts,” which are unique and nonrepeatable events. Accordingly, Mises concludes,

All that thymology can tell us is that in the past definite men or groups of men were valuing and acting in a definite way. Whether they will in the future value and act in the same way remains uncertain. All that can be asserted about their future conduct is speculative anticipation of the future based on specific understanding of the historical branches of the sciences of human action. . . . What thymology achieves is the elaboration of a catalogue of human traits. It can moreover establish the fact that certain traits appeared in the past as a rule in connection with certain other traits.

More concretely, all our anticipations about how family members, friends, acquaintances, and strangers will react in particular situations are based on our accumulated thymological experience. That a spouse will appreciate a specific type of jewelry for her birthday, that a friend will enthusiastically endorse our plan to see a Clint Eastwood movie, that a particular student will complain about his grade—all these expectations are based on our direct experience of their past modes of valuing and acting. Even our expectations of how strangers will react in definite situations or what course political, social, and economic events will take are based on thymology. For example, our reservoir of thymological experience provides us with the knowledge that men are jealous of their wives. Thus, it allows us to “understand” and forecast that if a man makes overt advances to a married woman in the presence of her husband, he will almost certainly be rebuffed and runs a considerable risk of being punched in the nose.

Moreover, we may forecast with a high degree of certitude that both the Republican and the Democratic nominees will outpoll the Libertarian Party candidate in a forthcoming presidential election; that the price for commercial time during the televising of the Major League Soccer championship will not exceed the price for commercials during the broadcast of the Super Bowl next year; that the average price of a personal computer will be neither $1 million nor $10 in three months; and that the author of this paper will never be crowned king of England. All of these forecasts, and literally millions of others of a similar degree of certainty, are based on the specific understanding of the values and goals motivating millions of nameless actors.

As noted, the source of thymological experience is our interactions with and observations of other people. It is acquired either directly from observing our fellow men and transacting business with them or indirectly from reading and from hearsay, as well as out of our special experience acquired in previous contacts with the individuals or groups concerned. Such mundane experience is accessible to all who have reached the age of reason and forms the bedrock foundation for forecasting the future conduct of others whose actions will affect their plans. Furthermore, as Mises points out, the use of thymological knowledge in everyday affairs is straightforward:

Thymology tells no more than that man is driven by various innate instincts, various passions, and various ideas. The anticipating individual tries to set aside those factors that manifestly do not play any concrete role in the concrete case under consideration. Then he chooses among the remaining ones.

To aid in this task of narrowing down the goals and desires that are likely to motivate the behavior of particular individuals, we resort to the “thymological concept” of “human character. ” The concrete content of the “character” we attribute to a specific individual is based on our direct or indirect knowledge of his past behavior. In formulating our plans, “We assume that this character will not change if no special reasons interfere, and, going a step farther, we even try to foretell how definite changes in conditions will affect his reactions.” It is confidence in our spouse’s “character,” for example, that permits us to leave for work each morning secure in the knowledge that he or she will not suddenly disappear with the children and the family bank account. And our saving and investment plans involve an image of Alan Greenspan’s character that is based on our direct or indirect knowledge of his past actions and utterances. In formulating our intertemporal consumption plans, we are thus led to completely discount or assign a very low likelihood to the possibility that he will either deliberately orchestrate a 10-percent deflation of the money supply or attempt to peg the short-run interest rate at zero percent in the foreseeable future.

While thymology powerfully, but implicitly, shapes everyone’s understanding of and planning for the future in every facet of life, the thymological method is used deliberately and rigorously by the historian who seeks a specific understanding of the motives underlying the value judgments and choices of the actors whom he judges to have been central to the specific event or epoch he is interested in explaining. Like future events and situations envisioned in the plans of actors, all historical events and the epochs they define are unique and complex outcomes codetermined by numerous human actions and reactions. This is the meaning of Mises’s statement.

History is a sequence of changes. Every historical situation has its individuality, its own characteristics that distinguish it from any other situation. The stream of history never returns to a previously occupied point. History is not repetitious.  

It is precisely because history does not repeat itself that thymological experience does not yield certain knowledge of the cause of historical events in the same way as experimentation in the natural sciences. Thus the historian, like the actor, must resort to specific understanding when enumerating the various motives and actions that bear a causal relation to the event in question and when assigning each action’s contribution to the outcome a relative weight. In this task, “Understanding is in the realm of history the equivalent, as it were, of quantitative analysis and measurement.” The historian uses specific understanding to try to gauge the causal “relevance” of each factor to the outcome. But such assessments of relevance do not take the form of objective measurements calculable by statistical techniques; they are expressed in the form of subjective “judgments of relevance” based on thymology. Successful entrepreneurs tend to be those who consistently formulate a superior understanding of the likelihood of future events based on thymology.

Posted in LIFE Leadership | 10 Comments »

Network Marketing & Gresham’s Law

Posted by Orrin Woodward on August 4, 2013

Gresham’s Law of Money states that bad money drives out good money. Fiat money, in other words, drives out real gold and silver since it is simply paper where gold and silver have real demand in the market. In a similar fashion, bad leadership drives out good leadership in Network Marketing. In the third video in the series, my good friend Art Jonak and I discuss how to check the Five Laws of Decline from harming your company.

In truth, a leadership/performance culture is the most effective way to check the Five Laws of Decline (FLD). How is your organization doing in its efforts to check the FLD? The answer to this question is imperative to the longterm success or failure of your company. LIFE Leadership is designed as a leadership culture that rewards people based upon performance, not politics for this reason.

Sincerely,

Orrin Woodward

Posted in LIFE Leadership | 11 Comments »

Theory, History, & Ideas

Posted by Orrin Woodward on August 2, 2013

The endeavors to mislead posterity about what really happened and to substitute a fabrication for a faithful recording are often inaugurated by the men who themselves played an active role in the events, and begin with the instant of their happening, or sometimes even precede their occurrence. To lie about historical facts and to destroy evidence has been in the opinion of hosts of statesmen, diplomats, politicians and writers a legitimate part of the conduct of public affairs and of writing history. Mises concludes that one of the primary tasks of the historian, therefore, “is to unmask such falsehoods. – Ludwig Von Mises from  Theory and History

The above quote from Ludwig Von Mises changed the way I studied and read history. For it confirmed, in my mind, that history results when the ideas percolating inside the mind of human actors are birthed before the watching world. Indeed, this mental breakthrough was nothing short of revolutionary because it ultimately led to the development of the groundbreaking Five Laws of Decline.

Joseph Salerno

Joseph Salerno

Joseph Salerno, an Austrian economist and scholar,  in his fantastic introduction to Murray Rothbard’s History of Banking in the United States elaborates on Mises’s and Rothbard’s historical method. Please read carefully and notice how ideas have consequences in history. Specifically, notice how important truth is to the world’s future, since untruth acted upon leads to misery and decline.

LIFE Leadership‘s purpose is to lead people to truth by building communities that have fun, make money, and make a difference through providing life-changing information in the 8F’s (Faith, Family, Finances, Fitness, Freedom, Fun, Friendship, and Following) of life. Since, as Mises, Rothbard, and Salerno explain, ideas have consequences, what LIFE Leadership does matters greatly at the deepest of levels. Here is a portion of Salerno’s introduction.

Sincerely,

Orrin Woodward

To begin with, Mises grounds his discussion of historical method on the insight that ideas are the primordial stuff of history. In his words:

History is the record of human action. Human action is the conscious effort of man to substitute more satisfactory conditions for less satisfactory ones. Ideas determine what are to be considered more and less satisfactory conditions and what means are to be resorted to to alter them. Thus ideas are the main theme of the study of history.

This is not to say that all history should be intellectual history, but that ideas are the ultimate cause of all social phenomena, including and especially economic phenomena. As Mises puts it.

The genuine history of mankind is the history of ideas. It is ideas that distinguish man from all other beings. Ideas engender social institutions, political changes, technological methods of production, and all that is called economic conditions.

Thus, for Mises, history establishes the fact that men, inspired by definite ideas, made definite judgments of value, chose definite ends, and resorted to definite means in order to attain the ends chosen, and it deals furthermore with the outcome of their actions, the state of affairs the action brought about.^

Ideas—specifically those embodying the purposes and values that direct action—are not only the point of contact between history and economics, but differing attitudes toward them are precisely what distinguish the methods of the two disciplines. Both economics and history deal with individual choices of ends and the judgments of value underlying them. On the one hand, economic theory as a branch of praxeology takes these value judgments and choices as given data and restricts itself to logically inferring from them the laws governing the valuing and pricing of the means or “goods.” As such, economics does not inquire into the individual’s motivations in valuing and choosing specific ends. Hence, contrary to the positivist method, the truth of economic theorems is substantiated apart from and without reference to specific and concrete historical experience. They are the conclusions of logically valid deduction from universal experience of the fact that humans adopt means that they believe to be appropriate in attaining ends that they judge to be valuable.^

The subject of history, on the other hand, “is action and the judgments of value directing action toward definite ends.”!” This means that for history, in contrast to economics, actions and value judgments are not ultimate “givens” but, in Mises’s words, “are the starting point of a specific mode of reflection, of the specific understanding of the historical sciences of human action.” Equipped with the method of “specific understanding,” the historian, “when faced with a value judgment and the resulting action . . . may try to understand how they originated in the mind of the actor.

For Mises, then, if the historian is to present a complete explanation of a particular event, he must bring to bear not only his “specific understanding” of the motives of action but the theorems of economic science as well as those of the other “aprioristic,” or nonexperimental, sciences, such as logic and mathematics. He must also utilize knowledge yielded by the natural sciences, including the applied sciences of technology and therapeutics.15 Familiarity with the teachings of all these disciplines is required in order to correctly identify the causal relevance of a particular action to a historical event, to trace out its specific consequences, and to evaluate its success from the point of view of the actor’s goals.

But what exactly is the historical method of specific understanding, and how can it provide true knowledge of a wholly subjective and unobservable phenomenon like human motivation? First of all, as Mises emphasizes, the specific understanding of past events is not a mental process exclusively resorted to by historians. It is applied by everybody in daily intercourse with all his fellows. It is a technique employed in all interhuman relations. It is practiced by children in the nursery and kindergarten, by businessmen in trade, by politicians and statesmen in affairs of state. All are eager to get information about other people’s valuations and plans and to appraise them correctly! The reason this technique is so ubiquitously employed by people in their daily affairs is because all action aims at rearranging future conditions so that they are more satisfactory from the actor’s point of view. However, the future situation that actually emerges always depends partly on the purposes and choices of others besides the actor. In order to achieve his ends, then, the actor must anticipate not only changes affecting the future state of affairs caused by natural phenomena, but also the changes that result from the conduct of others who, like him, are contemporaneously planning and acting.

As Mises puts it, “Understanding aims at anticipating future conditions as far as they depend on human ideas, valuations, and actions.” – Ludwig Von Mises from Ultimate Foundation

Posted in Freedom/Liberty, LIFE Leadership | 13 Comments »

Network Marketing and Bastiat’s Law

Posted by Orrin Woodward on July 30, 2013

My good friend and founder of MasterMind event, Art Jonak, visited me in Florida to shoot a series of videos on the Five Laws of Decline (FLD) and Network Marketing. In this segment, Art and I discuss Bastiat’s Law and how to prevent it from damaging your business. When the founders of LIFE Leadership developed our plans, we spent most of our time developing a culture that checked the FLD. Like I have said many times – Leaders create the culture and the culture creates the results. Here is the video.

Sincerely,

Orrin Woodward

Posted in LIFE Leadership | 10 Comments »