#67: The Responsibility Advantage

Over nearly 2 decades, I've directly managed, mentored, and invested alongside hundreds (maybe thousands) of people. During market downturns, funding crunches, and operational crises, I've noticed a stark divide: some people thrive while others implode, facing identical circumstances.

This fascination with human behaviour under pressure led me to study why people react so differently when things go wrong. The difference isn't intelligence, resources, or experience. It's their relationship with responsibility.

Here's what I discovered: humans are evolutionarily wired for self-serving bias. When outcomes don't match our self-image, our brains automatically protect our ego by blaming external factors. This served our ancestors well. Maintaining confidence helped survival. But in business, this same mechanism destroys performance.

People are the bedrock of every successful business, and understanding this psychological pattern has become one of my most valuable frameworks for predicting who will succeed. I'm going to share seven ways self-serving bias manifests, what to watch for in those around you (and yourself), and how to overcome each one.

#1: Defensive Energy Drains Problem-Solving Power

When your self-image gets threatened, like being told you failed, your brain kicks into defence mode. You spend the next few hours crafting explanations, building cases, and protecting your reputation.

Here's the problem: defending your ego drains the exact energy needed to solve the actual problem.

I've watched this loop destroy countless businesses. Threat to self-image triggers a defensive reaction, which depletes energy, leading to worse outcomes, creating more threats to self-image. Rinse and repeat until you're out of business.

When a product launch fails, a key hire doesn't work out, or a major client leaves, you face a choice. Spend energy on justification or solutions. You can't do both effectively.

#2: Seek Uncomfortable Feedback

Market feedback is always kind but rarely nice. Kind people tell you what you need to hear, even when it's uncomfortable. Nice people avoid giving you critical feedback because they're worried about hurting your feelings.

Declining metrics, customer complaints, team concerns, and partner warnings are gifts. Uncomfortable but essential data. The trap is surrounding yourself with people who protect your feelings rather than challenge your assumptions.

The employee who tells you your strategy isn't working is more valuable than the one who explains why your approach is "visionary." The advisor who questions your assumptions is worth more than the one who validates your decisions.

Actively seek the harshest, most direct feedback available. It's the fastest path to course correction. If everyone around you is agreeing with everything you say, you're in trouble.

#3: Explanations Don't Change Outcomes

Here's a hard truth: explanations, however accurate, don't alter outcomes.

Customers don't care if your supplier failed. They want their order. Investors don't care about your team's workload. They want results on schedule. Partners don't care about your internal challenges. They care about their own success.

This ties to what psychologists call "self-serving bias." We evaluate our failures by our intentions, but others evaluate us by our results. We think our reasons matter because they protect our self-image. The market disagrees.

Time spent crafting explanations equals time not spent solving problems. While you're building your defence case, your competitors are building solutions.

Clients, employees, and stakeholders judge you on delivery, not difficulty. Replace "Here's why this happened" with "Here's what we're doing about it."

#4: Own Results Without Owning Fault

There's a crucial distinction between fault assignment and responsibility assumption.

Economic downturns, algorithm changes, regulatory pivots… they’re rarely your fault, always your responsibility. The less control you have over circumstances, the more control you need over your response.

While competitors waste energy determining blame, exceptional leaders are already adapting. They understand that ownership without fault is a competitive advantage.

Ask "What's our next move?" before "How did this happen?" Own the customer experience even when third parties fail. Own the market position even when conditions change.

This isn't about being a martyr. It's about being strategic. Responsibility gives you agency. Blame gives you nothing.

#5: Control Your Energy Allocation

Energy directed at uncontrollable factors reduces energy available for controllable ones. Every hour spent on resentment is an hour not spent on strategy.

I see this constantly. Leaders complaining about new regulations instead of finding competitive advantages within them. Entrepreneurs lamenting market conditions instead of adapting their business model.

Exceptional leaders channel frustration into innovation. They turn obstacles into opportunities because they're not wasting energy on what they can't control.

Do a weekly energy audit. What percentage of your time goes to problems you can solve versus problems you can't? If it's not at least 80% solvable problems, you're bleeding competitive advantage.

#6: Use Adversity as Competitive Advantage

Easy conditions make average and exceptional performance indistinguishable. Anyone can run a business when everything goes smoothly.

Market volatility, economic uncertainty, and operational challenges separate contenders from pretenders. Difficult circumstances reveal who you really are versus who you think you are.

While others struggle with change, you build systems to thrive in chaos. This becomes your competitive moat. Seek challenges that stretch your capabilities… they're your differentiation mechanism.

The businesses that survive recessions, regulatory changes, and market disruptions solve problems faster than everyone else.

#7: Choose Outcome Over Ego

Stop bargaining with reality. Stop wishing the world worked differently. Accept how it actually works.

Fighting industry changes wastes energy that could build adaptive systems. Resenting market complexity burns resources that could make agility your competitive advantage.

Acceptance unlocks creative problem-solving. Resistance blocks it.

When facing setbacks, ask "How do we win from here?" not "Why is this happening to us?" Set the tone by immediately focusing on forward motion rather than backwards analysis.

Your team watches how you respond to adversity. They'll either learn to solve problems or learn to make excuses. Which culture are you building?

Final thoughts…

Here's the paradox: taking responsibility for things beyond your control actually gives you more control.

Every situation owned rather than explained builds trust, resilience, and capability. Your team trusts you more. Your partners rely on you more. Your customers choose you more.

In any industry where external disruption is constant, internal ownership becomes your most reliable competitive advantage. While others point fingers, you're already three moves ahead.

Choose your next response to adversity carefully. It's either building or eroding your capacity to win.

The leaders I've seen succeed long-term all share this trait. They take responsibility for everything in their sphere of influence, even when… especially when… it's not their fault.