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The Hidden Truths That Could Lead to Your Business's Downfall — and How to Uncover Them Hidden factors, such as unspoken emotions and unacknowledged experiences, can significantly impact business outcomes. By addressing these hidden dynamics, leaders can foster a more open, productive and humane work environment that aligns with the true values of the company.

By Peter Goldstein Edited by Chelsea Brown

Key Takeaways

  • Recognizing and addressing "the other elephant in the room" — the hidden, unspoken factors within your organization — is crucial for fostering growth, innovation and resilience.
  • Entrepreneurs must look beyond the surface to uncover insights that lead to more effective strategies and stronger relationships.

Opinions expressed by Entrepreneur contributors are their own.

In both personal and professional spheres, we often encounter the proverbial "elephant in the room" — the obvious glaring issues that no one dares to address. These unspoken problems can cast long shadows over progress, stifling innovation and growth.

However, there's another kind of "elephant." This other elephant represents the deeper truths about people, situations and organizations that are easily missed when we focus solely on the obvious. For entrepreneurs and business leaders, recognizing and addressing this hidden elephant is crucial for building successful and resilient organizations.

Related: How Your Leadership Style Could Be Stifling Innovation and Problem Solving at Your Company

The surface vs. the depths

The concept of an "elephant in the room" typically refers to something obvious yet ignored — an issue that is too uncomfortable to discuss. In a business context, this could be a toxic work environment, financial instability or a flawed strategy that no one wants to confront. These issues, if left unaddressed, can lead to the downfall of a company, as they fester and grow over time. But the other "elephant in the room" is different. It is not about what is visible and ignored; it is about what is invisible and overlooked.

This other elephant represents the hidden layers within each individual and organization. These are the unexpressed emotions and the unacknowledged experiences that shape behaviors, decisions and outcomes. In entrepreneurship, these hidden factors are often the key to understanding why things happen the way they do — why a promising business idea fails, why a team struggles to collaborate or why a leader makes seemingly irrational decisions. By looking beyond the surface, entrepreneurs can uncover insights that lead to more effective strategies and stronger relationships.

Eviatar Zerubavel, in his book "The Elephant in the Room: Silence and Denial in Everyday Life," explores how individuals and organizations often ignore or deny uncomfortable truths, leading to a culture of silence that can undermine effectiveness. In business, this silence around the other elephant — those unseen and unspoken truths — can prevent leaders from addressing critical issues that are essential for growth and innovation.

A lesson from the elephants

Recently, I had the privilege of visiting an elephant sanctuary in Thailand, where elephants rescued from abuse and neglect are provided a sanctuary to recover and thrive. Standing beside these magnificent creatures, feeding them and bathing in the mud with them was a transformative experience. Elephants are known for their incredible memory; they remember both the kindness and the cruelty they have experienced. Despite their memories of past abuse, they still welcome humans into their space and allow themselves to be cared for.

It was a valuable lesson in resilience and empathy — key traits that are not only vital in personal growth but also essential in business leadership. The elephants' ability to forgive and trust despite their traumatic pasts is a powerful reminder of the hidden stories that every individual carries.

Building meaningful connections

In entrepreneurship, success is often built on relationships — whether with customers, employees, investors or partners. Meaningful connections are the foundation of these relationships, and they require more than just a superficial understanding of the other party. Building meaningful connections requires taking the time to understand the deeper truths that drive people's decisions and behaviors.

For example, when negotiating with a potential business partner, it is easy to focus solely on the terms of the deal. However, understanding the other elephant in the room — their underlying motivations, fears and desires — can lead to a more successful and mutually beneficial agreement. Similarly, when working to resolve a conflict within your team, acknowledging the unspoken emotions and experiences of those involved can lead to a more effective and lasting resolution.

In the same way that the elephants at the sanctuary have learned to trust and connect with humans despite their past experiences, entrepreneurs and business leaders must learn to see beyond the surface and connect with the deeper layers of those they work with.

Related: How to Make Meaningful Connections at Work

The importance of empathy in leadership

The ability to recognize and address the other elephant in the room is a critical skill for entrepreneurs and business leaders. It requires empathy and an ability to look beyond the surface. Look for the unspoken dynamics within your organization, such as power struggles, unaddressed grievances and unvoiced concerns.

Empathetic leaders create environments where people feel seen, heard and valued. They recognize that an employee's performance is not just a reflection of their skills and knowledge, but also of their mental and emotional state. Thus, by addressing the hidden factors that affect their team members, empathetic leaders can foster a more positive and productive work environment. This might involve providing additional support to an employee going through a difficult time, or it might mean addressing underlying tensions within a team that are affecting collaboration.

The hidden elephant in organizational culture

The concept of the other elephant applies particularly to organizational culture. Every company has a culture, whether it is consciously cultivated or allowed to develop on its own. On the surface, organizational culture is often defined by visible elements such as mission statements, values and behaviors. However, the true essence of a company's culture lies beneath the surface, in the unspoken norms, beliefs and assumptions that guide how people interact and make decisions.

For entrepreneurs building a company from the ground up, it is essential to be aware of the hidden elephant in organizational culture. This means not only articulating clear values and expectations but also actively shaping the underlying dynamics that influence behavior. For example, a company might publicly promote a culture of innovation, but if employees fear taking risks due to unspoken repercussions, the true culture may be one of caution and conformity. By addressing these hidden dynamics, entrepreneurs can create a culture that truly reflects their vision and supports the success of their business.

Addressing the other elephant

For entrepreneurs and business leaders, acknowledging this hidden elephant is crucial for building resilient organizations and meaningful connections. It requires a commitment to looking beyond the obvious, understanding the deeper truths that drive behavior and leading with empathy and compassion.

I believe that by integrating these practices — recognizing the hidden layers within our teams, fostering empathy in leadership and addressing the unspoken elements of our organizational culture — we can create environments where people feel valued and understood.

Related: Why Empathy is Crucial to Your Success in the Business World

Take a moment to reflect on the other elephants in your own business or organization. What unspoken truths might be influencing your team's performance or your company's culture? How can you address these hidden dynamics and foster a culture of openness and empathy? By embracing this approach, you not only enhance your chances of business success but also contribute to creating a more humane, connected and resilient organization.

Peter Goldstein

Entrepreneur Leadership Network® Contributor

CEO And Founder of Exchange Listing, LLC, Author

Peter Goldstein is CEO and founder of Exchange Listing, LLC, which specializes in preparing small to mid-cap companies to execute a successful IPO on Nasdaq and NYSE. He is the author of Entrepreneur’s IPO: The Insider’s Roadmap to Taking Your Company Public.

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