Self-awareness is your greatest arbitrage

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Everything begins and ends with self-awareness. It’s the single greatest source of arbitrage and value creation (in life or business).

Fortunately, self-awareness is something that can be cultivated. And it’s a muscle that becomes more efficient each time you use it.

Nothing wrong with seeking advice or mentorship.

But we make it harder than it needs to be by looking outside – consulting experts, watching TED Talks, and scanning the shelves of bookstores – before looking within.

You must first see yourself clearly to mine the opportunities within; same is true for your company.

In any organization, you have to understand the leader, inside and out.

The Italians have an amazing phrase which translates to, “the fish rots from the head.” Almost all downstream problems begin with flawed leadership at the top that cascades throughout the organization.

In vetting major deals, I turn to 2 industrial psychologists I’ve used for years to spend time with founders. What am I looking for?

Shame and lack of self-awareness.

The interplay between the two is that unresolved shame impedes growth. And makes a leader want to look away rather than look within.

(I delve into the importance of shedding shame in my book, Burn The Boats, and recently expanded upon this subject with Next Big Idea Club.)

That said, if a leader over indexes on self-awareness, they are more likely to make their own course corrections.

And they are much less dependent on external intervention – therefore requiring less oversight. Better outcomes, more efficient.

Self-awareness also telegraphs to supporters that it’s safe to believe.

So take input, but never abdicate responsibility to be the captain of your ship. And never outsource your judgement to another.

When you hit a fork in the road, seek advice, seek data, synthesize it all – but in the end, listen to one voice above all else:

Your own.