Unleashed E59: Nick Thompson - Rebounding from Business Failure

At times leading our companies is like walking through a minefield. One wrong step could be disastrous. Being able to first recognize and then step around these mines is essential for reaching our destination.

Nick Thompson is the former CEO of North America’s largest promotional products conglomerate. Leaning into decades of experience in the deep trenches of running a business, he describes the pitfalls we must avoid to be successful.

Actions You Can Take Right Now

1. Use the 1-3-1 rule when employees escalate issues to management. When 1 issue or problem is raised, the individual must bring at least 3 possible solutions, and then the person and the manager agree on 1 course of action.
2. Don’t underestimate cultural misalignment in a merger. Deeply researching and understanding culture can make or break any company post-merge.
3. We get caught up in our own ‘web of brilliance’ which blinds us to impending threats. We must stay humble, seek feedback, and use the collective brainpower of all employees. Success is the devil in disguise.

View or listen to this and other past episodes on the Unleashed Podcast Library

Episode Highlights and Excerpts

• Most published research and writings of business thought-leaders focuses on what a company should do. Nick Thompson’s book, Look Out You’re About to Get F**ked provides a refreshing contrast by listing the top pitfalls leaders should avoid. It chronicles the rise and fall of his company which grew to over $100 million and was the most admired in its industry.
• Leaders must be careful about giving up control of decision making. Sure, we want to empower people, but ultimate control must reside with ownership and top management.
• Culture may eat strategy for lunch, as the saying goes, but culture is much harder to understand. Strategy is tangible, we can hand someone a strategic plan. Culture is intangible and embedded in all levels of the organization.
• Don’t underestimate cultural misalignment in a merger. Deeply researching and understanding culture can make or break any company post-merge.
• Psychological safety matters, but Nick espouses Psychological Ownership too. Psychological Ownership is a mindset where the work, assets, and outcomes of the business are treated by employees as if they personally owned them. One way to build this is to have employees create their own role-scorecards.
• Nick created the 1-3-1 rule when employees escalate issues to management. When 1 issue or problem is raised, the individual must propose at least 3 possible solutions, and then the person and the manager agree on 1 course of action. Embedding this policy not only helped make decisions faster, but also helped employees solve their own problems without escalation.
• It’s easy and natural for our egos to come into play when our companies are growing, admired, and successful. We get caught up in our own ‘web of brilliance’ which blinds us to impending threats. We must stay humble,   seek feedback, and use the collective brainpower of all employees. Success is the devil in disguise.
• 30% of business failure is due to employee theft. Remarkably, many employees feel justified in stealing from their companies. Leaders must maintain checks and balances and be careful about the authority over financial assets delegated to employees.
• Bias can cause us to chase new, shiny objects. Be objective about what makes your company successful and stick to that if it’s working.
• Our decisions drive our results. In the words of Niki Lauda, “Winning is one thing—but out of losing I always learned more. Don’t waste time blaming somebody else. Analyze yourself. Change yourself to be successful.”

Take Your Business to the Next Level

At Results we care about your success, we understand how overwhelming it can feel to run a business, and we’re here to help. Reach out to Nicole through our contact form for ways to unleash the potential of your business. 

Visit the Unleashed Podcast Library where you’ll find exclusive conversations with world-class thought leaders, authors, and leadership experts. 

Each episode of Unleashed is hosted by Results’ CEO Jeff Tetz who spends most of his day exploring what makes high performers tick and helping build a community of leaders who want to learn and grow together. Follow Jeff (Twitter; LinkedIn; Instagram) for more great leadership insights.

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Nick Thompson

With his energy and enthusiasm, Nick brings a new approach to corporate image management, culture development, and strategic enterprise growth. Nick now shares his 25+ years of leadership and executive management experience with business owners and professionals across North America.  

Nick spearheaded organizations that became internationally recognized, providing hundreds of individuals with employment in various locations across the globe. Under his guidance, many of these locations became award-winning businesses, having been listed as “Best Places to Work” by Counselor Magazine, as well as gaining the coveted “National Distributor of the Year” award by the Promotional Products Professionals of Canada.