Steve Pickering, the ‘unorthodox’ CEO of independent bed retail chain Sussex Beds, explains that it’s perfectly acceptable – indeed, essential – for managers to admit they don’t understand everything about their business …
It's OK to put your hand up and say, “I didn't know that” or “I don't understand”! In fact, this is the very best way to learn and grow.
If you think about it, much of this irrational fear stems from school. You'd only ever put your hand up if you knew the answer to a question, for fear of being ridiculed by your classmates or, even worse, a teacher. When really, the opposite should be encouraged – admitting when you don't know or understand is how we learn and grow.
I now make a conscious effort to put my hand up and say, “I don't know or understand.” Here are some real examples from my learning journey …
Profit versus cash generation: We're profitable, making money on paper – so why isn't our cash growing? Because loan repayments and dividends come out after profit is calculated! I put my hand up – I didn't understand that. Now I do.
Depreciation and amortisation: These accounting methods spread the cost of assets over their useful lives rather than recording the entire expense upfront. This gives a more accurate picture of profitability instead of showing artificially low profits in the purchase year followed by artificially high profits later. Hand up again – I didn't understand that. Now I do.
Balance sheets: I'll admit, I still don't fully grasp these. But gradually, through each patient explanation from our accountant, they're making more sense.
The point is simple – if you don't know, ask. Query. Question. Keep asking until you do understand. Your ego might take a small hit, but your knowledge – and your business – will grow exponentially.
Discover more of Steve’s thoughts here, or listen to his podcast, An Unorthodox CEO
