Having only one voice in the conversation results in blind spots and bad decisions. This framework helps you see things from the four main perspectives (hats) in business:
1. Artist (creators who are creating it)
They are highly creative. They love their ideas and their art. Artists and operators tend to be control freaks as they love their ideas. Unfortunately growth and control work inversely. The more growth you desire, the less control you can have (and vice versa).
2. Operator (technicians who are doing it)
They focus on getting it done. The erroneus belief is that the harder they work, the more they will make. Most operators spend so much time racing around putting out fires they never have the chance to figure out who is starting them.
3. Owner (executives who are leading, structuring, and leveraging it)
Owners add value through leveraging their team and analyzing key metrics. They focus on creating a structured system that relies on various components working together to achieve a common goal. A successful owner measures results, and adjusts activities to optimize successful outcomes.
4. Board (investors who are protecting and keeping it alive)
They have the abilities to question, probe, think sequentially, substitute rational thought from emotion, anticipate crisis, predict 2nd-order consequences, and identify risks. Unlike the other three hats, which are focused on the “doing” part of business, the Board (Investor) hat is a way of thinking.