book.chapter Your guiding principles

The 5-P Expansion Sequence is a framework that starts with defining your Purpose and Principles, then identifying your People, creating your Product, and culminating in Prosperity. It ensures your actions are rooted in your core values for meaningful success. 1-Philosophy Whether we realize it or not, we all have a personal philosophy that defines how we think and apply critical thought to achieve success. Every person has a basic philosophy—the question is whether we have consciously defined it. How we think and use thinking is fundamental to everything we do, so by forming concepts we enter the realm of philosophy. Despite perceptions of philosophy as abstract and impractical, it is highly practical for individuals and businesses. We need a structure from which to think and act, and our philosophy provides that framework. Contradictions between beliefs and actions can be destructive. For example, the founders of the failed Chutes fast food chain wrongly assumed McDonald’s success was due to fast service. People actually liked the taste, and speed was secondary. Due to this faulty philosophy, Chutes failed while McDonald’s grew. Contradictions may be internal deceptions or external errors about reality. The U.S. healthcare system spent $3.65 trillion in 2018, about $11,212 per person, yet health declines. There is an assumption medicine equals healthcare, but it does not. More medicine brings worse results, showing a philosophical contradiction. Economic issues follow from philosophical ones. To apply a philosophy effectively, consider that outcomes stem from our premises and the proof we see, multiplied by actions we take, divided by contradictions encountered. Analyzing these components systematically develops a functional philosophy. Defining core beliefs, reasons behind them, and plans to act on them simplifies the process. A clear personal stand becomes a personal brand, whether agreed with or not. 2- Purpose Being purpose-driven in business and in life provides the rocket fuel to propel a company to excel. Purpose doesn’t materialize from nowhere; it stems from philosophy. Humans uniquely can choose a purpose, which then serves as true north, guiding you through decisions and options instead of having circumstances force them upon you. To fully experience humanity and build a business that impacts the world, alignment around a shared purpose is essential, rallying stakeholders and empowering teams to greater heights. Many consultants overlook that purpose flows from philosophy; it's not a sudden epiphany. Your philosophy shapes your sense of purpose. Your purpose acts as an inner compass setting, orienting you toward goals beyond mere survival. Without purpose, you lack direction and are subject to external forces pushing and pulling you. Purpose fuels progress by clarifying why you do what you do. Consider the company culture. How do your policies and teams live out your values? Look at your business model too. If your purpose rings true and you deliver value, financial success will follow. Appointing an oversight team can initiate cultural change, but sustaining it requires a mindset shift at all levels. Purpose must permeate every interaction, not serve as a one-time checklist item. It’s a continual journey to align systems and employees with your north star. When such clarity of mission aligns all stakeholders, each person understands their contribution to the overall vision, sparking their best work. 3-Psychology The emotional state we experience when something happens is dictated by our personal psychology. Two people can share an identical experience yet have completely opposite emotional reactions. This difference in emotion is caused by the difference in personal philosophy held by each individual. For example, imagine a new law is signed by the country's political leader that radically increases taxes on high income earners, with the additional tax revenue being redistributed to low-income households. A liberal-minded person would likely be extremely happy with this development. In contrast, a more conservative-leaning individual would probably feel great frustration, despair, and possibly even anger in response. How can two mature people, accurately observing the exact same event at the same time, have such diametrically opposed emotional experiences? They both fully comprehend what is transpiring, yet their emotions are totally different. The cause of this difference lies in their philosophy. An individual's philosophical premises dictate their psychological and emotional reactions. Philosophy is the primary cause, while emotions are secondary effects. From a person's personal philosophy emerges their values and sense of purpose. These then dictate the emotions felt when various situations arise. When you experience "mixed emotions" about something, it likely indicates an element that contradicts your philosophy and values. Many self-help gurus erroneously promote psychology and emotional states as causes of behavior and decision-making. In reality, emotions are usually effects rather than primary causes. Philosophy and values form the foundation, which gives rise to emotions and psychological states in response to external events and environments. Attempting to directly adjust emotions without examining the underlying philosophical assumptions and values often proves an ineffective strategy for personal growth. The passage argues that properly recognizing emotions as secondary effects, dictated by more primary philosophical factors, allows greater self-understanding. This framework of philosophy as the central causal element enables intentionally cultivating values and purpose. Doing so facilitates responding to situations with emotions aligned to deeply held beliefs, rather than being pushed and pulled by external event-triggered psychological states. Adjusting behavior by working from the "inside out" through clarifying philosophy and values proves more effective for personal development than directly trying to manage emotional states arising from the "outside in." 4-Procedure When consuming business books, podcasts, hiring consultants, and attending seminars, most of the time the focus is on teaching improved and proven procedures first and foremost. The unspoken truth of the business world is that procedures alone do not generate success. I realize you may be thinking, "But that new webinar guaranteeing the latest social media tactics will increase my revenue by 50% or I get my money back!" However, notice the fine print stating "results may vary." Ever wonder why that disclaimer is necessary? Results vary because it's not the procedure producing the outcome; it's the philosophy and purpose of the person or business executing the procedure making the difference. Aligning with the 5-P model, you now grasp that your procedures only manage the effects created by your philosophy and purpose. Philosophy and purpose constitute the driving force - the great cause. Procedures themselves don't yield results - it's the individual or company implementing them that does. It's the "who" preceding the "do", with philosophy and purpose defining that "who." Too often, people gain clarity on philosophy and purpose, align psychologically, set things in motion, then - BAM - their procedures clash with those foundational elements, hitting a brick wall with a sign reading "Growth stops here." Your procedures should manage what your philosophy and purpose generate. Philosophy and purpose constitute the motivating power - the major cause. Not the procedures, but rather the person or business carrying out those procedures is what produces the outcome. The "who" before the "do", with philosophy and purpose delineating that "who." Procedures plainly conflicting with business purpose are simple to identify and rectify. It's those in the gray area between black and white that can and do disrupt progress. Complete alignment with purpose and philosophy is imperative for long-term success. Your procedures ought to handle what your philosophy and purpose create. Philosophy and purpose form the driving force – the great cause. It's the individual or company implementing those procedures that yields the results, not the procedures themselves. 5-Prosperity The most crucial thing to grasp is that prosperity is the eventual outcome of who you are, not the cause. If you invert this, you will find yourself constantly struggling in survival mode, endlessly grasping for prosperity yet never attaining it. When one starts a business primarily to make money and is eager to work tirelessly toward that goal, it is understandable how they inadvertently view prosperity as the cause. The flaw is in not realizing that seeing prosperity as the cause rarely yields actual prosperity. They may succeed temporarily, but it is unsustainable. Once you determine your purpose and philosophy, you begin to see prosperity as a way to expand your purpose's range instead of an escape from work into perpetual leisure. That explains why Bill Gates remained focused when Microsoft went public in 1986, making him suddenly worth $350 million. As Microsoft's chief software architect, his purpose was software all along. By his departure, his net worth was $50 billion. Michael Jordan made an estimated $90 million playing basketball in the 1980s. With endorsements, he was worth $400-$500 million upon initial retirement. Rather than lounge on a beach, he returned two years later, donating his salary to 9/11 charities. Unable to play further, he purchased a basketball team. Today he is worth $1.9 billion. When Sylvester Stallone wrote Rocky, he lived on $26 per week, sharing a floor with ten people. Though offered $360,000 for the script, he declined because playing Rocky was his purpose. The role proved a breakthrough, and he is now considered one of Hollywood's most successful figures. Grasping the sequence from philosophy to prosperity is vital whether you are a solopreneur or in a Fortune 100 firm - these principles always apply. Every person and business has a philosophy, conscious or not. The question is whether you have defined yours to serve as your business's foundation. The forces either tearing your business apart or driving it to greater effectiveness stem from this philosophy.