PODCAST REVIEW: The Role Identity Plays in Business Acquisition with Adam Ringo | 1,000 Stories
Featured this week 10–31–23 in TheHub Mainstreet M&A news and events:
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The Hub Short Take:
Adam Ringo discusses the importance of evaluating leaders when investing in a business. He emphasizes the need for alignment between the investor and the leader, including chemistry, capacity, and calling. Adam believes that leaders should have the capacity to execute and hold people accountable, as well as the ability to think creatively and inspire others. He also highlights the importance of falling in love with the process rather than being solely focused on the outcome. Adam emphasizes the value of relationships and the need to prioritize people over monetary success.
Key Takeaways:
- Evaluating leaders involves assessing chemistry, capacity, and calling.
- Leaders should have the capacity to execute and hold people accountable.
- Falling in love with the process is more important than being solely focused on the outcome.
- Relationships should be prioritized over monetary success.
Quotes:
- “If we started to evaluate things on a relational score like the relational magnitude or the relational weight or the relational value that we carry with other people, then it’s a lot more fun to do business together.”
- “Alignment is everything. There’s certain value and belief sets that are important to us.”
- “We can all self admit that one, we’re broken people. Like, we’re kind of messed up and we pursue self all the time.”
- “The reality is we all know we can’t control outcomes. The world is so much bigger than us.”
- “At the end of the day, when we’re 65, 75 years old, our kids, our friends, things of that nature, they could care less. I hope my kids care a lot less about wealth that was created for them and a lot more about who I was as a dad.”
The Guest:
Adam Ringo is the leader of a family office and a private equity investor. He focuses on investing in small to medium-sized businesses and takes a controlling interest in these companies. Adam is passionate about building sustainable businesses that create long-term impact for both the employees and the community.
The Host:
Element Three is a marketing consultancy in Indianapolis, Indiana. We transform brands and generate demand for organizations at inflection points of growth. But don’t just take our word for it. See our work: https://elementthree.com/our-work/
The Article:
The Art of Investing in Leaders: Navigating Inflection Points
by The Team at How2Exit.com
Introduction
In the world of business, leaders often find themselves at critical inflection points that require them to navigate major changes and make crucial decisions. But how do these leaders successfully navigate these inflection points? And what tools and practices do they use to ensure their success?
In this thought-provoking article, we will explore these questions by delving into a conversation with Adam Ringo, who leads an investment group and has a unique perspective on investing in leaders. We will examine the importance of evaluating leaders from an outside perspective, the qualities that make a great leader, and the tools and frameworks that can aid in decision-making during times of change.
Exploring the Three C’s: Chemistry, Capacity, and Calling
One of the key insights that emerged from our conversation with Adam was the importance of alignment between investors and leaders. Adam emphasized the significance of chemistry, capacity, and calling when evaluating potential leaders. He explained that chemistry refers to the compatibility and rapport between the investor and the leader. Capacity refers to the leader’s ability to execute tasks and manage teams effectively. And calling refers to the leader’s passion and sense of purpose in their role.
Adam highlighted the need for alignment in values and beliefs between investors and leaders. While it is not necessary for leaders to share every belief with investors, they should be able to work within the framework and philosophies set by the investors. This alignment ensures a strong partnership and a shared vision for the future.
The Challenge of Letting Go of Control
One of the challenges that leaders face during times of transition is the need to let go of control. Many leaders are accustomed to being the decision-makers and having the final say in all matters. However, when investors come on board, leaders must be open to new ideas and different ways of doing things.
Adam shared his experiences of working with leaders who were resistant to change and reluctant to relinquish control. He emphasized the importance of leaders being open to coaching and willing to adapt to new systems and processes. This willingness to be coached and to embrace change is a crucial factor in determining the success of a leader during times of transition.
The Power of Stewardship and Radical Simplification
Adam also discussed the concept of stewardship and its role in business. He explained that his investment group aims to build sustainable businesses that are profitable and provide long-term impact. Stewardship, according to Adam, involves taking risks on behalf of multiplication and impact. It requires reinvestment, sacrifice, and a focus on the well-being of both the business and the people involved.
Adam also introduced the idea of radical simplification as a guiding principle in business. He emphasized the importance of simplifying processes and operations to create capacity for creative thinking and innovation. By adopting a mindset of radical simplification, leaders can focus on building sustainable businesses and creating long-term value.
The Importance of Identity and Self-Awareness
Throughout our conversation with Adam, the theme of identity emerged as a crucial factor in leadership. Adam stressed the importance of leaders understanding their own identity and being self-aware. He highlighted the need for leaders to separate their identity from their role in the business and to find their purpose and calling beyond their professional achievements.
Adam shared his personal experiences of discovering his own identity and finding fulfillment beyond the pursuit of wealth and success. He emphasized the importance of relationships and the impact that leaders can have on the lives of others. By focusing on building meaningful connections and serving others, leaders can find purpose and fulfillment in their roles.
Conclusion and Future Outlook
In conclusion, investing in leaders during times of transition requires careful evaluation and alignment between investors and leaders. Chemistry, capacity, and calling are key factors to consider when assessing potential leaders. Leaders must be open to change, willing to be coached, and able to adapt to new systems and processes.
Stewardship and radical simplification are guiding principles that can help leaders build sustainable businesses and create long-term impact. By focusing on relationships, self-awareness, and a sense of purpose, leaders can navigate inflection points with confidence and make decisions that benefit both the business and the people involved.
As we look to the future, it is clear that investing in leaders will continue to be a critical aspect of business growth and success. By prioritizing values, relationships, and personal growth, leaders can create a positive impact and drive meaningful change in their organizations.
Note: This article is based on the conversation with Adam Ringo in the interview, and all quotes are verbatim from the transcript of the conversation.
Join us next week as we continue to sift through the wealth of information out there, helping you understand what it takes to excel in today’s dynamic business environment.
Written by the team at How2Exit.com
