Read Your Own Emails
We were in a meeting the other day when I said something colossally stupid. The table called me on it, and I agreed.
What I’d proposed was an idea that would net a small gain for one of our portfolio companies at the risk of exposing our entire portfolio to loss. While it might have worked, that’s not ring-fencing, it’s inviting contagion. “It’s like I don’t even read my own emails,” I muttered later to myself.
And yet…
There’s a reason why “Do as I say, not as I do” is an aphorism. It’s often much easier to say something than actually do it. One example in sports is the football coach who punts when the entire team and the television commentators and all of the fans in the stadium know they should go for it.
There are a lot of cognitive biases at work for why this can be the case, particularly in stressful situations. To combat them it’s important to have objective procedures in place such as checklists or manuals or reference guides to know when you are deviating from the standard you set when weren’t stressed. But even more important, particularly if you’re in a position in leadership, is to make sure you empower everyone around you to call this out when it happens.
After all, one of the most important things someone can do for you is tell you you’re wrong and be right.
Have a great weekend.
P.S. Permanent Equity’s investing team is hiring. Click here for the details.
– By Tim Hanson
