Does Experience Make Us Overconfident?
Today I met a top exec with serious credentials and 18 YEARS IN CHINA. She called us in to review the takeover potential for their Tmall store.
My team looked at the store and said, “gross negligence and / or incompetence.” Too many mistakes. Tons of low hanging fruit. Any competent operator (I mean ANY) could see the potential.
We asked them how they chose their current operator…and we heard the classic tale of “my Ecom manager’s friend’s friend.” They had no casework and were a fledgling agency. But they still assigned rights to them…really???
Her deep experience led to overconfidence in her team’s ability to manage performance. When we rush our normal due diligence process and focus on speed, bad things can happen (e.g., losses are in the millions).
Experience can be a huge asset but also can lead us to make some bad decisions now and then. Sometimes being a cautious newbie is a gift.
Which is why I have my team review my own performance quarterly. As painful as it is, radical transparency keeps us honest…no blindsides!
#DueDilligence #PerformanceReview #Transparency #China #Tmall #TmallPartner