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Leadership

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Contrarians Make Groups Better

I tend to be a fact-driven independent thinker. I enjoy hearing different perspectives, though, and I’m happy to be persuaded by sound logic. Today I had two great conversations about group decisions that got me thinking. How do you get the best decisions from a group?

Groups of credible people are powerful. They can make great decisions. Each person brings a perspective shaped by their unique experiences. When they share it, everyone else glimpses the world through their lens. Incorporating the views of disparate people produces a better, more comprehensive decision. Will it be a perfect decision? No. Will it be stronger and more cohesive? Absolutely!

I’ve often found that it’s difficult to get every member of a group to speak up. A confident, perhaps dominant, person who shares their opinion early on can sway others too easily and discourage them from sharing their thoughts. Groupthink is the result, and it’s not a good thing. If everyone rallies behind a single perspective instead of discussing different ways of looking at the problem, the result is a consensus decision that is weak.

I’ve read lots about this and I believe consensus decisions can be dangerous. One of the conversations I had today affirmed this. The lack of a contrarian perspective in a group is a warning sign. If everyone sees the issue the same way, the group may be overlooking something material. If they are, the decision they settle on will be flawed and probably wrong.

The next time you’re working in a group and you have a different opinion than others do, let it be heard (respectfully and collaboratively). Even if the group doesn’t agree with you, you’re adding value. You never know—your contrarian view could be the difference between a disastrous decision rooted in groupthink and an amazing one!

The Cycle of Growth, then Efficiency

This past week I talked with two founders. Both of them have wildly successful companies that are still growing. But they told me they’re reducing head count. For most companies, the customer landscape has changed—but for these companies, not so much. They’re still growing at a healthy clip (just not as fast as they were). Even so, I wasn’t surprised. Their need to get leaner is rooted in decisions made during a period of rapid expansion.

Both founders have hired aggressively over the last few years as they’ve grown rapidly. In that scenario, roles can be created without anyone knowing whether they’re needed. I’ve seen companies hire someone to do manual tasks that custom software could handle. The person responsible for the department doesn’t have time to delve into what each person is doing or how they’re doing it. They just know their team is maxed out because of the company’s growth, so they go to HR and ask to add more people. And even if they knew that software could help them, it probably wouldn’t get built. Engineering teams are focused on customer-facing work to increase revenue—new product features, bug-fixing, etc. They don’t have time to consider projects that would make internal teams’ lives easier.

Quality can slip, too. Instead of hiring an A player in a two-month recruiting process, you add a B player because you have just thirty days to fill the role. Over time, the quality of your team falls, which has all kinds of ramifications down the road.

One day you look up and see people who aren’t fully utilized . . . employees without a clearly defined role . . . team members who aren’t carrying their weight.

Both of these entrepreneurs see staff reductions as a way to address these issues. In my opinion, they’re able to consider layoffs because their focus has changed. They know it’s easier to keep a customer than find a new one (especially in this environment). They want to better serve their current customers in order to reduce churn. At this moment, efficiency, not growth, is the goal.

Business is cyclical, and I suspect that despite the pandemic, what’s happening with these companies is part of the normal business cycle.

Helping Others Fill Their Gaps Will Light Their Path

Achieving entrepreneurial success can take many years. Many things make the journey difficult, but I believe gaps play an outsize role. Big relationship, knowledge, or capital gaps can break an entrepreneur. Maybe you don’t know anyone to introduce you to a decision maker in your industry. Or you’re unsure how to recruit the right team members. Or you don’t have the money to fund your growth plans—and don’t know how to go about acquiring it. I want to be clear: all entrepreneurs have gaps—extra-large ones are what I’m referring to.

To succeed, you have to figure things out as you go along. You must find the ideal path to your destination. If your gaps are yawning abysses, you’re looking for a path that’s in pitch-black darkness. But if they’re minimal, the path is lined with bricks and LED lights. You still have to find it and walk down it, and there will be obstacles along the way, but it will be far less difficult and time consuming to traverse.

My gaps were huge when I founded CCAW. I didn’t realize they were, though, until I surrounded myself with others through organizations like EO. I was able to start filling those gaps with their help. It’s still a work in progress, but plugging my gaps gave me a much better chance to succeed.

I’m a strong believer that Atlanta’s entrepreneurial ecosystem can reach the next level. The city has a lot going for it. Let’s help rising entrepreneurs who have big gaps gain the knowledge, build the relationships, and acquire the capital they need. Together, we can help Atlanta reach its full potential!

What Drives My Why?

Last week I taught Intro to Entrepreneurship at Atlanta Tech Village’s Startup Summer School. My session touched on the need to know your why. Since then, I’ve been in touch with a few of the people who attended, helping however I can. This morning I received a Slack message from one of them. He asked a great question: “So what was your why with CCAW, and is it changing as you start your next chapter?”

This entrepreneur’s business is in its early stages but making great progress. He built a working MVP and then signed twenty or so paying customers within a few months of launching. All during a pandemic. He’s on to something, in my opinion.

When I started CCAW, I was a few years removed from being an undergrad. I had some corporate experience and no real responsibilities. A car enthusiast for years, I had automotive parts relationships. As a parts consumer, I knew how difficult acquiring the right part at a fair price could be. In high school and college, I had a company that developed and executed plans to customize customers’ vehicles (think Pimp My Ride). Having worked with parts manufacturers and distributors, I knew their struggles well. My why was simple: I wanted to help consumers easily connect with parts companies. This would help two groups I was familiar with. There was also a financial motivation, but it was secondary.

Now to part two of his question. What’s my why for my next chapter? I’ve thought a lot about this and it’s simple, too: I want to make life easier for entrepreneurs and small and medium-sized business. Especially those with big gaps in knowledge, relationships, or capital. (In other words, people like me in CCAW’s early years.) I know their struggles. I’m one of them, and I’m passionate about helping them. If I’m successful, I’ll accelerate their success. I’m hopeful they’ll give back to someone else when they’re able to.

My whys were born of my personal experiences. That makes me credible and able to relate well with the folks I seek to help. And it drives the passion behind my why.

What’s your why?

We Don’t Like It, But We Need It

This week, I shared some lessons I’ve learned with Startup Summer School attendees. One of the biggest was how important a cofounder is. I started CCAW as a solo founder. Even though it worked out—CCAW was a success—it was painful. Our progress was slower than it could have been and I was stretched super thin. I’ve thought more about why a cofounder is so beneficial. One word sums it up: accountability.

I often hear “not having to report to anyone” and “being my own boss” as top reasons for being an entrepreneur. But the most successful entrepreneurs are accountable to someone: a board of directors, cofounders, investors. Accountability leads to success. No accountability can prevent or slow your success. Why is that?

Accountability means that you’re expected to deliver on commitments by taking action. Others are relying on you. If you don’t deliver, there are clear repercussions for yourself and others. Translation: you can’t do whatever you want, whenever you want.

When you’re accountable to no one, you don’t have to commit. No commitment means no clear repercussions. Translation: you think you can do whatever you want, whenever you want. Entrepreneurship is all about taking action to meet a goal. But when you’re not accountable to anyone, you tend to take action when you want to, not when you need to. Over time, no action or slow action hinders you. And you shortchange yourself and everyone who works for you but doesn’t have the power to hold you accountable.

If you’re starting a company, try not to go it alone. And whatever you’re doing, find a way to make yourself accountable to someone.

Why’d They Do That?

In an earlier post, I shared my views on the power of listening to understand. I’ve continued to think about how we can help each other through this turmoil.

As CCAW grew, our team grew. I was no longer involved in every decision or even aware of every initiative. An empowered team making decisions without me was my goal. Inevitably, some decisions didn’t result in the desired outcome. Translation: things blew up sometimes.

No one is perfect, and my team members had good intentions. We were all in it together, working to build a great company. Naturally, we sometimes had different ideas about how to do it. Our different perspectives were valuable and often lead to amazing outcomes. But sometimes they caused us to miss the mark.

By the time something reached my desk, it usually meant a decision had worked out poorly. Instead of beating a dead horse, I learned to focus on the reasons for the decision. Why did you do it that way? Why was that the chosen path? What led up to you making that decision? Asking these questions was far more valuable than casting blame. I listened with the intent to understand, and ultimately, I did—I understood their why. Then I was able to work with them to develop solutions that supported their why.

Understanding why begets perspective. More importantly, it gives insight into the other person’s perspective. Understanding why someone makes the choices they do is a building block in (or even the foundation of) the positive working relationship required to achieve a common goal.

We’re all in this together, but that doesn’t mean we all see things the same way. Consider listening to understand why. When you do, you can begin to see things from a different perspective.

You might be interested in this short video about Colin Kaepernick's and Army veteran Nate Boyer’s desire to understand one another. It led Nate to “understand that we’re not that different, and we probably want the same things at the end of the day” and to a compromise that incorporated both perspectives.

Be part of the solution. Understand why.

What Can I Do?

I’ve been thinking deeply about what’s needed to see us through these troubling times. I shared some things I’ve learned in yesterday’s post. Today, as I sorted through my thoughts, I read a quote that resonated with me:

Try to understand men. If you understand each other you will be kind to each other. Knowing a man well never leads to hate and almost always leads to love.

                                                                ~ John Steinbeck

The best way to understand someone is to listen to them—to not just hear their words, but to pay attention to what they believe and what they feel. When we understand each other, we can relate to each other. When we relate to each other, we can appreciate our differences and love each other. If we don’t listen, or we let their words flow by while we formulate our rebuttal, or we mindlessly dismiss them, we will not understand them (and we will give them no chance to understand us).

So where do we start? No one knows what the solution looks like. That makes it hard to know what to do. As an entrepreneur, I’ve learned the power of taking a step in the right direction even when the path is nearly invisible. Often, I had no idea what I was doing, but I sorted it out as I went along. Always, I kept my eye on the outcome I hoped for. I see our current state of affairs as no different.

If you want to take that first step, here’s my suggestion:

Reach out to someone with a background different than yours—someone with a perspective on life that you might not understand. Ask them if they’re OK and if they want to talk. If they say yes, just listen.

This act is simple but powerful. Anyone can do it. You might be interested in this short video about one person who did it and how it affected the person he struck up a conversation with. If many of us do it, we will open lines of communication that will lead to what we sorely need: an understanding of each other.

Be part of the solution.

What Leading Badly Taught Me

As CCAW grew, I had to learn how to lead. It wasn’t always pretty. At times, I was very uncomfortable doing it. Leaders have to make tough decisions. Unpopular decisions. Sometimes you do your best, but you get it wrong anyway. Like all leaders, I experienced self-doubt. Eventually, though, I settled on a style that worked for me.

I’m not lively or outspoken, so being a boisterous leader was out. It just didn’t feel right. But that was OK. I chose to lead by example instead. It’s subtle but powerful, effective, and authentic. I communicated how I envisioned CCAW operating (fairly, respectfully, and ethically) and was deliberate in aligning my behavior with that vision. I tried to hold myself to the same standard that I held everyone else to. I wasn’t special or exempt. The team noticed and followed my lead. They treated everyone they interacted with as they would want to be treated and we became known as a well-run, upstanding organization.

No one is perfect and I’m sure I had my days, but I tried to always be deliberative. Of course, I did make bad decisions sometimes, and here are my takeaways from them:

  • Owning it – Acknowledge your mistake quickly. I tried to reflect and share what I learned from a bad decision. I wanted my team to know that it’s OK when things don’t turn out as planned as long as we learn from the situation. They appreciated it.
  • Doubling down – I lost my team’s respect when I refused to own a mistake and instead doubled down. Don’t throw good money after bad. Once respect is lost, it’s difficult to regain it. And it’s impossible to win the war if the troops stop following.
  • Letting go – Leaders can’t make all the decisions. It’s impossible to know everything about a complex organization. I learned to acknowledge my gaps and defer to others who had more knowledge in specific areas. Empowering people motivates them.
  • Listening – Sometimes people just want to be heard. Everyone is entitled to an opinion and their own perspective. It’s OK to disagree with someone, but it’s disrespectful to them when you refuse to listen. And sometimes you learn something by being open to what others have to say.

We can’t expect perfection from anyone. But leaders should hold themselves to a high standard—one that’s at least as high as the one to which they hold their team. If they don’t, their lack of integrity will erode trust and divide the team over time.

What have you learned from your mistakes as a leader?