The other day I came across this old news story: a guy who was gambling at a Fort Lauderdale casino put $50 in a slot machine and asked his friend who was with him to push the button for luck.
Suddenly, lights started flashing and the pay line showed he won the $100,000 jackpot. However, his “friend” quickly grabbed the ticket and demanded that she get the prize money. He argued he was the one who placed the bet and put the money in, and therefore it was his prize money.
To settle the argument, the casino officials reviewed the videotape of the entire incident and sided with the guy’s friend, giving her the prize money and escorting her out of the casino with security to make sure he didn’t attempt to take the money from her. Apparently the casino’s rule is that whoever pushes the button is the actual gambler and official winner of any prize money, not the person putting up the money for the bet.
I’m sure the friend thought she was perfectly justified in taking 100% of the money. Maybe she reasoned that she needed it more than he did. Maybe she rationalized her theft because the casino sided with her; after all, that was the casino’s rules and he should have known the rules. She might have even convinced herself that she IS lucky, and if SHE hadn’t pushed the button, he wouldn’t have won.
Point is, people are extremely capable of the vilest betrayal of others when the right circumstances present themselves. This reminds me of the old Robert Ringer book, Winning Through Intimidation. In the book, he says there are three kinds of people: Type #1 – Those who are clear and overt that they want your “chips.” Type #2 – Those who say they don’t want your “chips” but secretly do and are scheming how to take them away. Type #3 – Those who say they don’t want your “chips” and honestly don’t, but when push comes to shove, they WILL take your chips and justify their behavior.
Most people don’t like Type #1, but they are the most honest people to work with – the others not so much. Over and over again, I hear of clients and friends who get robbed blind by people they trusted with their clients, their checkbook and their business. They gave complete and unfettered control to someone, with no checks or balances in place – no accountability, no inspections and often no contracts. They argue that these people were close family friends…employees who have been with them forever…“good people.” Problem is, it defies human nature. Even Christ was betrayed by one of His own inner circle. If He can be betrayed in such a manner, why do we think we can’t be?
As a business owner or executive leading a team, betrayals multiply with your growth and success. The employee who quits, taking the client list with them to directly compete with you. The vendor who leaves you in a ditch when they lie and fail to deliver, as I recently had over Christmas with a vendor who swore things would be delivered before the 25th, but the gifts showed up on the 28th. The strategic partner who doesn’t pay you what’s owed – a situation I’ve had happen repeatedly over the years. The ungrateful client who forgets everything you’ve done for them in the past and fires you – possibly even trashes you online – attempting to do as much damage on the way out as possible. People you’ve gone out of your way to help, only to have them crap all over you when your back is turned, for absolutely no justifiable reason.
How do you deal with all of this? First and foremost, be very, very careful about who you actually trust, and put controls in place to check and monitor everyone. I find far too many people putting trust in others too quickly, or simply overlooking major red flags and warning signs. No person can be totally trusted, particularly in business matters. Even contracts that YOU think are airtight don’t ensure you won’t get burned. If someone violates a contract, there’s a process that must happen: lawyers get involved, there’s waiting on the courts, arbitration, negotiation, etc. By the time you get things sorted out, the employee who takes your client list and is actively stealing your customers and smearing your reputation can do a LOT of damage before they can be stopped, and even IF you win your case, you’ve been harmed and dragged through the mud, distracted, frustrated and taken off course.
Some people can just out-lawyer you, dragging things out for months or YEARS of back-and-forth with only the lawyers coming out ahead. One person I had to sue over outright and blatant IP theft simply hired an attorney and countersued me for defamation – a completely groundless lawsuit designed only as a bargaining chip against my legitimate lawsuit against him. He then proceeded to move around so he couldn’t be served papers, failing to show up for court and making it impossible to collect the fines and fees levied on him by the court. After months, he simply went out of business and filed for bankruptcy – the problem gone but the damage done. But don’t think for a minute this means you shouldn’t bother with a good contract that protects YOU; if you don’t, it absolutely ensures you’re gonna get kicked in the nuts hard – the damages more severe, ugly, disruptive and costly.
This is also why you need to keep a close eye on the financials in your business, from credit card charges to checks. I can’t tell you how many people have been screwed over by a business partner or employee who was stealing from the company and got away with it for months or YEARS because nobody was looking at the invoices and credit card charges. I’ve had clients discover their salespeople were out playing golf for most of the day when they were supposed to be prospecting – or techs who were going home to take a nap in the middle of the day when they were supposed to be at a client’s office working. Others have discovered their salespeople selling client information to competitors. Techs are also high on the betrayal list, starting their own MSP on the side while picking up a paycheck and learning the business from the company they are employed at, taking clients with them when they leave, no agreement in place to stop them.
Just remember, the more you strive to grow, profit, compete and win, the more you will have to depend on an ever-expanding circle of people, exposing yourself to greater opportunities for betrayal in all forms. My point isn’t to put you off growth or make you not trust anyone, but rather to be more diligent and careful about your agreements and who you do business with. Trust, but verify, and be supremely careful about letting anyone – even someone posing as your closest friend – have complete control over anything into which you have put a lot of time, energy and cash.
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