A Scientific Approach to Planning Your Business Exit
In his latest book, “Think Again, The Power of Knowing What You Don’t Know”, New York Times bestselling author Adam Grant makes a compelling case for “the critical art of rethinking: learning to question your opinions and open other people’s minds, which can position you for excellence at work and wisdom in life.”
In Part One: Individual Rethinking, the author explains how we often assume roles of Preacher, Prosecutor, or Politician, rather than that of Scientist in a key decision-making process, and how that is often detrimental. Grant describes the following cycles while recommending the RETHINKING CYCLE as a scientific approach:
THE OVERCONFIDENCE CYCLE: Pride > Conviction > Confirmation & Desirability Biases > Validation
THE RETHINKING CYCLE: Humility > Doubt > Curiosity > Discovery
We have found that owners planning for exit, who adopt a scientific, or “rethinking cycle” approach are much more likely to experience a successful transition out of their business. They indeed humbly realize and proclaim that “they don’t know what they don’t know”, and engage help in discovering what they should do and how they should do it. They understand what’s at stake and have been intentional in questioning or doubting their convictions and biases and with humility and curiosity seeking knowledge and wisdom from others who can challenge their current thinking. As a result, the chances for a successful exit, and the owner’s peace of mind, are greatly increased. The opposite almost always proves true on some level for an owner who moves forward adopting “the overconfidence cycle”.
One of Grant’s recommended “Actions for Impact” is to “Build a challenge network, not just a support network.” For an owner planning their exit, this could include business owner peers who have already walked the exit walk, as well as an expert advisor team (those who have knowledge that the owner doesn’t) who could serve in challenging the owner’s assumptions, convictions, biases, while providing needed knowledge and insight.
In planning for the most significant event in your life as a business owner, your inevitable exit from the business, you would be well-served in reading Mr. Grant’s book and adopting his proposed RETHINKING CYCLE. Please consider contacting us about playing a role on your “Challenge Network”.