Today we will talk about fostering a robust feedback culture in your organization. But creating such a culture is not a one-time event; it requires consistency, commitment, and strategic planning.

The Role of Leadership and Trust:

Leaders play a critical role in creating an open feedback culture. A leader's approach to feedback sets the tone for the entire organization. By asking for critical feedback and demonstrating the ability to accept it without retaliation, leaders show their openness and commitment to personal growth and learning. This openness to critique sends a strong signal to the team that feedback is not just accepted but valued.

Simultaneously, leaders must practice giving positive, affirming feedback. Highlighting successes, however small, fosters a sense of accomplishment and motivates employees to strive for excellence. This balance of constructive critique and positive reinforcement nurtures trust, which is the bedrock of a strong feedback culture.

There’s a time and place for negative feedback as well.

Dedicating Regular Time to Foster Feedback Culture:

Building a feedback culture requires dedicated time and effort.

Incorporate regular feedback sessions into your business schedule—these could be daily or weekly, depending on your needs. Use these sessions to teach the value of feedback, encourage your team to share their insights, and model effective feedback strategies. Giving a time and place to it makes it more understanding, out of the blue may be alarming to new employees.

Over time, this investment will foster a culture where feedback is sought after and appreciated, rather than feared. Great employees will look forward to it. Underperforming or average employees will learn from it and be held accountable.

The Balance of Praise and Criticism:

When it comes to giving feedback, remember this golden rule: "Praise in public, criticize in private." Publicly acknowledging and praising an employee's accomplishments bolsters their confidence and motivates them to maintain high performance. On the other hand, criticism, when necessary, should be given privately to prevent embarrassment and resentment.

Furthermore, feedback should not just focus on what needs improvement. A healthy feedback culture values positivity and reinforcement as much as constructive criticism. Therefore, praise should be given often, while criticism should be dispensed selectively and purposefully. This approach nurtures a positive atmosphere and encourages continuous learning.

Mastering the Art of Feedback:

Effective feedback has two core components.

First, it involves stating the specific behavior. Second, it involves expressing the impact that behavior had on the individual, others, or the situation.

This objective, non-judgmental approach to feedback allows the receiver to understand the implications of their actions and consider appropriate changes.

The Power of "Intent Conversations":

Once the basics of feedback are in place, the next step is to foster "intent conversations." These are discussions that delve deeper into our interpretations and perceptions about a particular situation. They involve comparing our mental narratives about what happened, leading to shared understanding and improved mutual relations.

The ability to participate in intent conversations without falling apart is a crucial leadership skill. It demonstrates emotional maturity and openness to different perspectives, which are essential for a collaborative, feedback-rich work environment.

The Impact of Feedback Receptiveness:

Receptiveness to feedback significantly influences an individual's growth and development. Those who are open to feedback show a willingness to learn and improve, which is beneficial for both their personal growth and the overall performance of the organization.

If someone consistently proves incapable of receiving or acting upon feedback, they may inadvertently disrupt the team's dynamics and culture. In such scenarios, it may be necessary to reassess their role or consider their fit within the organization.

Building a feedback culture is a journey that demands dedication, patience, and empathy. But the rewards are worth the effort. By fostering a culture of feedback, your business can promote continuous improvement, boost team collaboration, and ultimately drive success. Feedback is not about finding faults; instead, it is a tool for learning, growth, and mutual understanding in your journey towards excellence.

Thanks to Everest Brady for his help, writing, and research in assembling this week’s newsletter.

This Week on Think Like an Owner

Our guest today is Julian Scadden, CEO of Nexstar, an industry education, coaching, content, and data business all-in-one for plumbing, HVAC, and electrical companies. We am super excited for this episode. This is a fascinating company and has been mentioned by no less than three other podcast guests to us.

We talk about Nexstar’s business model and ownership structure, which is really unique, how they help member companies, what the best-performing companies in their membership do, developing and maintaining a sharing-based culture, and so much more. Enjoy!

This episode Q&A features CEO August Felker of Oberle Risk Strategies, answering the question, “Can I just roll the insurance from the company I just acquired into the ownership of my business?”

Every CEO and entrepreneur needs support from a team of expert professionals like attorneys, bankers, and accountants like Hood & Strong. Less often mentioned, and just as important, is insurance. And August Felker at Oberle Risk Strategies are the experts that you need on your team to navigate the insurance needs of your company as dozens of past podcast guests have partnered with them to do. Oberle helps you evaluate where your current and soon to be acquired company needs for insurance today and what it might need tomorrow. please reach out to learn more about how Oberle can help with insurance due diligence at oberle-risk.com. Or reach out to the CEO, August Felker, directly at [email protected].

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Think Like an Owner is sponsored by:

Ravix Group - Ravix Group is a fraction CFO, outsourced accounting, and HR consulting firm serving small and large businesses alike. Whether you or someone you know is getting started, searching to buy a business, or building out an organization, Ravix will help on the journey. To learn more about Ravix Group, head to their website and tell them Think Like An Owner sent you.

Hood & Strong, LLP – Hood & Strong is a CPA firm with a long history of working with search funds and private equity firms on diligence, assurance, tax services, and more. To learn more about how Hood & Strong can help your search, acquisition, and beyond, please email one of their partners Jerry Zhou at [email protected].

Oberle Risk Strategies– Oberle is the leading specialty insurance brokerage catering to search funds and the broader ETA community, providing complimentary due diligence assessments of the target company’s commercial insurance and Employee benefits programs. If you are under LOI, please reach out to learn more about how Oberle can help with insurance due diligence at oberle-risk.com. Or reach out to the CEO, August Felker, directly at [email protected].

Interested in sponsoring? Reply to this email and let’s chat.