A story about Luke Combs being embroiled in a scandal appeared in my feed today (Dec. 14, 2023), highlighting the law of unintended consequences. Here is a brief summary (generated 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 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. Upset by the situation, Combs invited Harness to a show to apologize in person.”
Note that for the sake of this post, I will assume no bad intent on the part of Luke Combs and that he was truly caught unaware of the scandal, as reported in the original article. After carefully reading the article, I was pleased to 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. One of my favorite quotes explains the situation: “Show me the incentive, and I will show you the outcome.” – Charlie Munger. This firm was left unmanaged and unchecked, and was therefore incentivized to take every advantage to increase its revenues. I am sure they followed the letter of the law, and yet Luke is now embroiled in a scandal of his own unintended making. Those blind spots can be brutal and become the source of unintended consequences. But here is the scary part … if Luke Combs actually manages his business in this fashion, 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, yet they are equally important to running a successful and drama-free business. Your passions might make you famous and/or rich, but what you ignore might also take it 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 leads to feeling overwhelmed and no longer in control.
If you are unsure how to get started or feel overwhelmed, a business coach can be a great way to start. Let’s engage.