There was a fascinating story about Luke Combs being embroiled in a scandal in my feed today (Dec. 14, 2023) that highlights the law of unintended consequences. Here is a brief summary (created by ChatGPT):
“Country singer Luke Combs expressed distress upon learning that he had won a $250,000 judgment against Nicol Harness, a fan who made $380 selling tumblers with his likeness. Unaware of the lawsuit, Combs discovered it through a news report featuring a tearful Harness, who was struggling financially and recovering from heart failure. Combs contacted Harness, offering $11,000 for immediate needs and pledging to raise funds for her medical bills by selling his own branded tumblers. The judgment against Harness was part of a broader action against multiple counterfeit sellers. Combs, upset by the situation, invited Harness to a show to apologize in person.”
Note that for the sake of this post, I will not assume bad intent on the part of Luke Combs and that instead he was truly caught unaware of the scandal as reported in the original article. After carefully reading the article, I was pleased find that he took immediate action to remedy the situation by making a heartfelt apology and taking steps to address the situation with Harness. However, here is what I did not read.
- There was no mention of reviewing his relationship with the law firm that takes action against trademark and copyright infringement.
- There was no mention of reviewing the judgments against the other people potentially hurt by the law firm.
What I read between the lines is that he had hired this firm and then forgot about them, thus creating an environment primed for many and potentially damaging unintended consequences. Perhaps, the firm operated on a contingency basis and he only ever received a paycheck from them, or he never had quarterly reviews to ensure their actions were consistent with his ethics (and brand). Regardless, this firm was left to act in an unchecked manner. Here is one of my favorite quotes that goes a long way to explaining the situation, “Show me the incentive, and I will show you the outcome.” – Charlie Munger. This firm was left unmanaged and unchecked and were therefore incentivized to take every advantage to increase their revenues. I am sure that they followed the letter of the law, and yet Luke is now embroiled in a scandal of his own unintended making. Those unknown-unknowns can be brutal and become the source of unintended consequences. But, here is the scary part … if this is in fact how Luke Combs manages his business, how many more scandals, legal issues and threats to his business exist that he does not know about?
I’ve not met many business owners who enjoyed managing business activities outside of their driving passion, and yet they are equally important in order to run a successful and drama-free business. Your passions might make you famous and/or rich, but what you ignore might also take it all away.
If you are a founder, a sole proprietor or even the CEO of a large family business, you either have to take ownership of every facet of your business, or hire and manage trusted people to do so for you. Leaving outside firms to manage activities for you in an unchecked manner can only lead to unpleasant surprises and unintended consequences. Furthermore, these situations can then have a cascading effect that lead to a sense of feeling overwhelmed and no longer in control.
If you are unsure how to get started or feel overwhelmed, an executive coach can be a great way to start. Let’s engage.