1
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It's kind of wild when you think about how much money

2
00:00:02,680 --> 00:00:05,160
just vanishes from stores every single year.

3
00:00:05,160 --> 00:00:06,000
Yeah, it's crazy.

4
00:00:06,000 --> 00:00:07,500
We're talking billions.

5
00:00:07,500 --> 00:00:08,320
Billions.

6
00:00:08,320 --> 00:00:09,320
With a bee.

7
00:00:09,320 --> 00:00:10,360
It's an insane amount.

8
00:00:10,360 --> 00:00:11,440
Just gone.

9
00:00:11,440 --> 00:00:12,640
And I think a lot of people,

10
00:00:12,640 --> 00:00:14,000
when they think about this problem,

11
00:00:14,000 --> 00:00:16,440
they jump immediately to shoplifting.

12
00:00:16,440 --> 00:00:17,280
Right.

13
00:00:17,280 --> 00:00:18,120
But it's so much bigger than that.

14
00:00:18,120 --> 00:00:19,120
Oh, absolutely.

15
00:00:20,000 --> 00:00:21,840
It's like a, it's shrink.

16
00:00:21,840 --> 00:00:22,680
Shrink, yeah.

17
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That's the word, right?

18
00:00:23,520 --> 00:00:25,720
The big scary word that encompasses everything.

19
00:00:25,720 --> 00:00:26,560
Yeah.

20
00:00:26,560 --> 00:00:27,720
So we're talking, you know, theft.

21
00:00:27,720 --> 00:00:28,560
Of course.

22
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Damage.

23
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Like what happened to it?

24
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Where'd it go?

25
00:00:31,680 --> 00:00:32,320
Yeah.

26
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Those inventory issues that drive you crazy.

27
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Makes you want to pull your hair out.

28
00:00:36,200 --> 00:00:38,760
And you shared some really interesting stuff about this.

29
00:00:38,760 --> 00:00:39,600
Yeah, I hope so.

30
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Particularly this platform called Insight.

31
00:00:42,720 --> 00:00:45,120
So you ready to take a deep dive into this?

32
00:00:45,120 --> 00:00:45,960
Let's do it.

33
00:00:45,960 --> 00:00:46,800
All right.

34
00:00:46,800 --> 00:00:47,640
So Insight.

35
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They're approaching this whole shrink thing

36
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a little differently.

37
00:00:51,520 --> 00:00:52,880
Yeah, they have a pretty unique angle.

38
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They're really focused on employees.

39
00:00:54,960 --> 00:00:56,400
Employees, exactly.

40
00:00:56,400 --> 00:00:58,440
And I got to be honest.

41
00:00:58,440 --> 00:01:01,680
When I first heard that, I was like, really?

42
00:01:01,680 --> 00:01:02,920
I can see why you'd say that.

43
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That's the solution.

44
00:01:04,120 --> 00:01:06,280
It doesn't sound as exciting as like,

45
00:01:06,280 --> 00:01:08,960
I don't know, some high tech AI security system.

46
00:01:08,960 --> 00:01:10,480
Right, like lasers and stuff.

47
00:01:10,480 --> 00:01:12,680
Like something out of a movie.

48
00:01:12,680 --> 00:01:14,000
But, and here's the thing.

49
00:01:14,000 --> 00:01:14,840
Okay.

50
00:01:14,840 --> 00:01:16,560
When you actually think about it,

51
00:01:16,560 --> 00:01:19,440
it's the employees who are on the front lines

52
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every single day.

53
00:01:20,600 --> 00:01:21,440
That's true.

54
00:01:21,440 --> 00:01:23,160
They're the eyes and ears of your store.

55
00:01:23,160 --> 00:01:24,280
Okay, yeah.

56
00:01:24,280 --> 00:01:25,600
So it makes sense.

57
00:01:25,600 --> 00:01:26,440
Yeah.

58
00:01:26,440 --> 00:01:29,680
Give them the tools and the knowledge

59
00:01:29,680 --> 00:01:31,400
to really combat this.

60
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To be like, I don't know, empowered or something.

61
00:01:33,560 --> 00:01:34,880
Empowered, that's the perfect word.

62
00:01:34,880 --> 00:01:36,960
It's about more than just empowerment though, right?

63
00:01:36,960 --> 00:01:39,240
It's about giving them the knowledge

64
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to actually spot the problems

65
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before they become, you know, major issues.

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So like training.

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Training, exactly.

68
00:01:48,040 --> 00:01:49,080
Okay, so give me an example.

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00:01:49,080 --> 00:01:50,520
All right, so let's talk inventory.

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Okay.

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00:01:51,360 --> 00:01:52,200
Cause that's another thing

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that the insight material really emphasized.

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See, now that's where I'm surprised.

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Really?

75
00:01:57,120 --> 00:01:59,000
Yeah, because I think shrink.

76
00:01:59,000 --> 00:02:01,400
I'm thinking like shoplifters.

77
00:02:01,400 --> 00:02:02,600
Yeah, the classic image.

78
00:02:02,600 --> 00:02:03,440
Exactly.

79
00:02:03,440 --> 00:02:05,520
Someone's sneaking out with a, I don't know,

80
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a TV in their jacket.

81
00:02:06,800 --> 00:02:07,720
Right, right.

82
00:02:07,720 --> 00:02:08,680
But inventory.

83
00:02:08,680 --> 00:02:11,120
Inventory can be a silent killer, honestly.

84
00:02:11,120 --> 00:02:11,960
What do you mean?

85
00:02:11,960 --> 00:02:12,780
Well, think about it.

86
00:02:12,780 --> 00:02:14,480
You've got thousands of products, right?

87
00:02:14,480 --> 00:02:15,320
Yeah.

88
00:02:15,320 --> 00:02:17,280
Maybe tens of thousands, depending on the store.

89
00:02:17,280 --> 00:02:18,120
Oh, for sure.

90
00:02:18,120 --> 00:02:20,080
And if just a handful of those

91
00:02:20,080 --> 00:02:22,400
are consistently misplaced during stocking

92
00:02:22,400 --> 00:02:24,440
or, you know, mislabeled or whatever.

93
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Like it out airs.

94
00:02:25,280 --> 00:02:26,120
Exactly.

95
00:02:26,120 --> 00:02:27,760
And over time, that adds up.

96
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That makes sense.

97
00:02:28,600 --> 00:02:29,760
And suddenly you're not talking

98
00:02:29,760 --> 00:02:32,200
about a few misplaced items.

99
00:02:32,200 --> 00:02:34,840
You're talking about a significant chunk

100
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of your inventory, just gone.

101
00:02:36,920 --> 00:02:38,080
Wow.

102
00:02:38,080 --> 00:02:40,960
And it's not just the lost merchandise itself, right?

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I don't.

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Think about the customer's experience.

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Okay.

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They come in looking for a specific item

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and they can't find it.

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Out of stock?

109
00:02:48,520 --> 00:02:49,360
Exactly.

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Yeah.

111
00:02:50,200 --> 00:02:51,680
But it's not actually out of stock.

112
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It's just misplaced somewhere

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in the labyrinthine back room of the store.

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Oh, so frustrating.

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Right.

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The customer's frustrated.

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They might go somewhere else next time.

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You lose the sale.

119
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Exactly.

120
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And you've still got that item

121
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taking up space in your inventory.

122
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So you're losing twice.

123
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You got it.

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It's a double whammy.

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Wow.

126
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Okay, I'm seeing the light here.

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Good, good.

128
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But I gotta be honest.

129
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There's one more connection in here

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that's really throwing me.

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What's that?

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Customer service.

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Ah, yeah.

134
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How does that play into this whole shrink thing?

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Well, it's all about creating an environment, right?

136
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Okay.

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You want your store to be a place

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where people are less likely to even think about stealing.

139
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Okay.

140
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And a big part of that is having employees

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who are engaged.

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With customers.

143
00:03:39,200 --> 00:03:40,040
Exactly.

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They're interacting with customers.

145
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They're visible on the sales floor.

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So it's like someone walks in,

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they're thinking about maybe pocketing something.

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Right.

149
00:03:48,480 --> 00:03:50,200
But then they see employees everywhere.

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And suddenly it feels riskier.

151
00:03:51,760 --> 00:03:52,600
Right.

152
00:03:52,600 --> 00:03:53,440
Stealing.

153
00:03:53,440 --> 00:03:54,280
Exactly.

154
00:03:54,280 --> 00:03:56,520
Like, it's not worth it.

155
00:03:56,520 --> 00:03:57,360
Hmm, interesting.

156
00:03:57,360 --> 00:03:59,360
It's kind of like that eyes on the street idea.

157
00:03:59,360 --> 00:04:00,840
Oh, yeah, I've heard of that.

158
00:04:00,840 --> 00:04:01,800
Right.

159
00:04:01,800 --> 00:04:04,560
Like a well-maintained, lively street

160
00:04:04,560 --> 00:04:06,520
is naturally going to deter crime.

161
00:04:06,520 --> 00:04:08,680
Right, right, because it feels safer.

162
00:04:08,680 --> 00:04:09,520
Exactly.

163
00:04:09,520 --> 00:04:11,920
And it's the same principle in a store.

164
00:04:11,920 --> 00:04:13,360
Wow, I never thought of it that way,

165
00:04:13,360 --> 00:04:14,760
but that makes total sense.

166
00:04:14,760 --> 00:04:16,440
And on top of that,

167
00:04:16,440 --> 00:04:20,000
good customer service can actually make customers

168
00:04:20,000 --> 00:04:22,800
less likely to rationalize stealing in the first place.

169
00:04:22,800 --> 00:04:23,720
Really?

170
00:04:23,720 --> 00:04:24,560
How so?

171
00:04:24,560 --> 00:04:25,400
Think about it.

172
00:04:25,400 --> 00:04:27,960
If you walk into a store and you feel valued,

173
00:04:27,960 --> 00:04:31,040
if you have a positive interaction with an employee,

174
00:04:31,040 --> 00:04:32,160
you're probably not going to turn around

175
00:04:32,160 --> 00:04:33,600
and try to steal from them, are you?

176
00:04:33,600 --> 00:04:34,680
No, probably not.

177
00:04:34,680 --> 00:04:36,240
It's about building relationships,

178
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not just transactions.

179
00:04:37,440 --> 00:04:38,720
Yeah, that makes sense.

180
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A happy customer is much less likely

181
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to become a shrink statistic.

182
00:04:42,400 --> 00:04:43,520
That's a really good point.

183
00:04:43,520 --> 00:04:47,040
So yeah, customer service can be a surprisingly powerful tool

184
00:04:47,040 --> 00:04:48,520
in the fight against shrink.

185
00:04:48,520 --> 00:04:49,680
Huh, who knew?

186
00:04:49,680 --> 00:04:52,480
All right, so we've talked about employees,

187
00:04:52,480 --> 00:04:54,040
we've talked about inventory,

188
00:04:54,040 --> 00:04:55,840
we've talked about customer service.

189
00:04:55,840 --> 00:04:56,840
The trifecta.

190
00:04:56,840 --> 00:04:58,560
Right, but what about the tech?

191
00:04:58,560 --> 00:05:00,360
Ah, the fancy gadget.

192
00:05:00,360 --> 00:05:02,080
Exactly, because I know a lot of companies

193
00:05:02,080 --> 00:05:04,720
are investing in all sorts of security systems.

194
00:05:04,720 --> 00:05:07,480
Oh yeah, the cameras, the alarms, the whole nine yards.

195
00:05:07,480 --> 00:05:09,280
Right, but the source material we have here,

196
00:05:09,280 --> 00:05:11,240
it doesn't really dwell on that stuff.

197
00:05:11,240 --> 00:05:12,240
No, it doesn't.

198
00:05:12,240 --> 00:05:15,160
It's almost like those things are just a given, you know?

199
00:05:15,160 --> 00:05:18,200
That's because they are just a part of the equation,

200
00:05:18,200 --> 00:05:19,480
not the whole solution.

201
00:05:19,480 --> 00:05:21,440
Okay, I think I see where you're going with this.

202
00:05:21,440 --> 00:05:23,840
It's like this, you can have the most sophisticated

203
00:05:23,840 --> 00:05:26,120
top of the line security system in the world.

204
00:05:26,120 --> 00:05:26,960
Yeah.

205
00:05:26,960 --> 00:05:29,680
But if your employees don't know how to use it,

206
00:05:29,680 --> 00:05:32,560
if they're not trained to respond effectively.

207
00:05:32,560 --> 00:05:33,480
It's useless.

208
00:05:33,480 --> 00:05:36,000
Exactly, you're basically just throwing money away

209
00:05:36,000 --> 00:05:36,840
at that point.

210
00:05:36,840 --> 00:05:38,200
It's like, what's that saying?

211
00:05:38,200 --> 00:05:40,720
You can lead a horse to water.

212
00:05:40,720 --> 00:05:42,160
But you can't make it drink.

213
00:05:42,160 --> 00:05:44,880
Exactly, you can have all the fancy tech in the world.

214
00:05:44,880 --> 00:05:45,920
All the bells and whistles.

215
00:05:45,920 --> 00:05:48,640
But if your employees aren't empowered to use it.

216
00:05:48,640 --> 00:05:49,960
To really take ownership.

217
00:05:49,960 --> 00:05:52,280
Then it's just, I don't know, for show.

218
00:05:52,280 --> 00:05:53,800
It's window dressing, basically.

219
00:05:53,800 --> 00:05:56,400
Right, and that kind of leads into something else,

220
00:05:56,400 --> 00:05:58,040
the source material highlighted.

221
00:05:58,040 --> 00:05:59,280
Okay, what's that?

222
00:05:59,280 --> 00:06:00,640
Company culture.

223
00:06:00,640 --> 00:06:03,960
Ah, the ever important company culture.

224
00:06:03,960 --> 00:06:06,520
Because it's not enough to just tell your employees

225
00:06:06,520 --> 00:06:07,360
don't steal.

226
00:06:07,360 --> 00:06:09,000
Right, it has to go deeper than that.

227
00:06:09,000 --> 00:06:11,320
Yeah, like how do you actually build an environment

228
00:06:11,320 --> 00:06:14,600
where people want to do the right thing?

229
00:06:14,600 --> 00:06:17,240
Where they feel invested in the success of the business.

230
00:06:17,240 --> 00:06:18,400
Exactly.

231
00:06:18,400 --> 00:06:21,520
Because if they care about the place they work.

232
00:06:21,520 --> 00:06:23,360
If they feel respected and valued.

233
00:06:23,360 --> 00:06:25,320
They're less likely to steal from it, right?

234
00:06:25,320 --> 00:06:27,440
Absolutely, they see it as like stealing

235
00:06:27,440 --> 00:06:28,520
from themselves almost.

236
00:06:28,520 --> 00:06:30,440
Right, it's like, hey, this is my place.

237
00:06:30,440 --> 00:06:31,520
I'm helping to build this.

238
00:06:31,520 --> 00:06:33,040
Exactly, it becomes personal.

239
00:06:33,040 --> 00:06:34,200
Okay, so how do we do that?

240
00:06:34,200 --> 00:06:36,280
How do we build that kind of culture?

241
00:06:36,280 --> 00:06:39,200
Well, it's not a one size fits all answer, unfortunately.

242
00:06:39,200 --> 00:06:41,080
Right, because every workplace is different.

243
00:06:41,080 --> 00:06:43,080
Exactly, but it starts with communication.

244
00:06:43,080 --> 00:06:44,920
Okay, so talking to your employees.

245
00:06:44,920 --> 00:06:46,200
Talking with them, not at them.

246
00:06:46,200 --> 00:06:48,720
Right, having those open lines of communication.

247
00:06:48,720 --> 00:06:52,760
Exactly, and then it's about creating a culture of trust.

248
00:06:52,760 --> 00:06:54,920
Trust, okay, so how do you do that?

249
00:06:54,920 --> 00:06:57,200
By actually trusting your employees.

250
00:06:57,200 --> 00:06:58,440
Give them responsibility.

251
00:06:58,440 --> 00:06:59,280
You empower them.

252
00:06:59,280 --> 00:07:02,320
Exactly, empower them to make decisions to take ownership.

253
00:07:02,320 --> 00:07:04,920
Because if you treat them like they're part of the solution.

254
00:07:04,920 --> 00:07:06,120
They'll start to act like it.

255
00:07:06,120 --> 00:07:06,960
That makes sense.

256
00:07:06,960 --> 00:07:08,520
And when you have that kind of culture,

257
00:07:08,520 --> 00:07:10,640
that's when you see the real magic happen.

258
00:07:10,640 --> 00:07:12,440
The shrink just disappears.

259
00:07:12,440 --> 00:07:13,800
Well, it doesn't disappear entirely,

260
00:07:13,800 --> 00:07:16,000
but it becomes much less of a problem.

261
00:07:16,000 --> 00:07:18,360
Right, because everyone's invested in preventing it.

262
00:07:18,360 --> 00:07:20,400
Exactly, and that's the beauty

263
00:07:20,400 --> 00:07:22,160
of this holistic approach, you know?

264
00:07:22,160 --> 00:07:23,760
It's not just about one thing.

265
00:07:23,760 --> 00:07:25,600
It's about everything working together.

266
00:07:25,600 --> 00:07:28,280
The training, the culture, the technology.

267
00:07:28,280 --> 00:07:30,320
It's about creating an environment

268
00:07:30,320 --> 00:07:32,760
where shrink doesn't stand a chance.

269
00:07:32,760 --> 00:07:33,680
I like the sound of that.

270
00:07:33,680 --> 00:07:36,720
Me too, is a win-win for everyone involved.

271
00:07:36,720 --> 00:07:38,240
So if you're listening out there

272
00:07:38,240 --> 00:07:41,240
and you're dealing with shrink in your own workplace.

273
00:07:41,240 --> 00:07:43,080
Take a look at your own company culture.

274
00:07:43,080 --> 00:07:46,520
Talk to your employees, invest in training.

275
00:07:46,520 --> 00:07:48,720
And don't be afraid to think outside the box.

276
00:07:48,720 --> 00:07:51,440
Because the solution might be simpler than you think.

277
00:07:51,440 --> 00:07:52,680
It might just be a matter of

278
00:07:52,680 --> 00:07:54,840
entowering the people around you.

279
00:07:54,840 --> 00:07:56,480
Great advice to end on.

280
00:07:56,480 --> 00:07:58,840
Thanks for taking this deep dive with me.

281
00:07:58,840 --> 00:07:59,920
Anytime.

282
00:07:59,920 --> 00:08:13,680
This was fun.