Teaching How and the Why

When you get into a new industry or business, you want to continually be asking why. But now it’s in your head. The common solution is to document it. Or create your own processes based on your workflow preferences and experiences.

Beyond documenting it, you should aim to hire those who will question. Or teach and coach and encourage that skill within current and future employees.

I’ve seen people who know how to do something, but not exactly why, at every company I have worked at. This breaks when an employee doesn’t have the full context, they will go forward with their assumptions.

You want people to question and then have the ability to think through things. Not necessarily question everything to the point where there are issues with decisions, but questioning why something is the way it is. Otherwise, you and other leadership and some significantly experienced employees will be the only ones with the know how. Foster an environment where employees feel comfortable asking questions and expressing their thoughts without fear of judgment or repercussions. This can be achieved by promoting transparency, offering regular feedback sessions, and implementing open-door policies.

Recognize and reward employees who actively seek to understand the "why" behind their work. By celebrating their curiosity and efforts to learn, you'll reinforce the importance of asking questions and create a more knowledgeable workforce. I've seen people move up the ranks simply because they learned so much faster because of their curiosity.

Hire or build a culture of questioning everything. Look for candidates who exhibit a strong sense of curiosity and a desire to learn. Additionally, invest in training and coaching programs that encourage employees to develop their questioning and critical thinking skills. You will find better ways to do things, you will reinforce teachings for employees, and other benefits. This is how you company iterates towards improvements in process, but also teaching and overall knowledge per person.

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

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This Week on Think Like an Owner

This episode was a live recording at a joint event in Chicago between the Booth and Kellogg Business Schools. Our guest was Doug Cook, Chairman of several companies throughout Illinois in windows and siding, chimney care, garages, elevators, and more; With windows and siding being his most notable business in Feldco. Doug gives a deeper walkthrough of his very impressive and entrepreneurial career at the start of our conversation. We also talk deeply about empathy and how to develop it as a skill, empathy when building a team and selling to customers, trust and respect as a CEO, lessons that are the hardest to be taught, and much more. Doug is a fantastic person, we think that will come through loud and clear throughout the episode.

When it comes to accounting, quality of earnings reports and financial due diligence, it is vital to have a partner that understands your business and what you are trying to accomplish. Jerry Zhou and his team at Hood & Strong in San Francisco have a specialty for search funds and lower middle market private equity with multiple podcast guests today trusting them with their partnership.

For advice and observations, this episodes Q&A features Jerry Zhou answering the question, "How is a quality of earnings different from an audit?" 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].

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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].

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