3 Ways To Counteract The Halo Effect

_{[Read time: 3.5 minutes]}

This month, I’ve met 6 business owners over virtual chats.

All have various expertise — marketing research and strategy, newsletter sales, business consulting, creative strategy, operations consulting, and content editing.

• We shared stories over digital coffee

• We engaged in sparring sessions (no punches thrown)

• We turned those 30-minute “get-to-know-you” calls into 2 hours of brain-breaking conversations

I left every chat with more energy than when it started. I remember thinking, “Wow, that was awesome; I really liked them.”

They all radiated digital charisma.

Then, my brain did something interesting: it judged their entire character based on that charm.

I saw them as competent, trustworthy, smart, innovative, and every other good quality in the book — despite any tangible evidence.

I told you, I’m a sucker for charm.

But I’m alone.

This psychological effect is called the Halo Effect — the tendency to judge someone based on one characteristic.

(Now, do I genuinely believe those 6 have all positive qualities? Yes, 100%, 😁)

Feeling this effect prompted me to consider alternative impacts (outside of just meeting people).

So, here are 3 ways to counteract the halo effect in your business (so you avoid poor judgment):

1 — Implement a paid trial run when hiring an employee, subcontractor, or advisor.

This is the most obvious application.

I’ve heard countless stories of hiring people because of ‘how good they make you feel.’ While the vibe is not something to ignore, it’s not the entire picture.

When you implement a paid trial run, you can also assess actual performance and commitment. I don’t mean those “probationary periods” after you hire them; I mean trial runs during the hiring process.

I encountered this four years ago when I pitched to consult at a niche private equity firm backed by major investors. The COO had every candidate complete a detailed research report for their investors as part of the hiring process (and guaranteed payment to all candidates, regardless of selection).

There were three rounds.

I found out only 1/3 of the candidates actually finished the assignment.

When you implement the trial run, you can choose the right person based on their work, not just their charm.

(I didn’t get the engagement, but I was a finalist if that counts for anything)

2 — Encourage customers to share one piece of constructive feedback for every positive comment they provide (and vice versa).

Most people (not just customers) find it hard to give honest feedback.

You know why…hurt feelings.

Customers will highlight the positives and hide anything remotely constructive, creating a halo-like feeling of “everything's great." This just leaves you unsure why your service isn’t working.

To combat this, I introduce balance into the feedback process. For every positive, I ask for a constructive one as well.

This triggers a switch in my mind to seek insights rather than just seeking to feel good.

3 — Solicit opinions before launching a new service (particularly if you're obsessed over a specific feature)

I love opportunity — finding that fraction of potential is intoxicating.

It’s a good trait of an entrepreneur, but it's also super distracting.

Just because I’m attached to one feature doesn't mean the market will find it appealing. This has led to me overestimating demand or falling for the shiny object.

To avoid this trap, I test the idea first on LinkedIn or in this newsletter. I used to worry about someone stealing my idea, but most people are too focused on their ideas to want to steal mine.

For example, I recently posted on LinkedIn about a different take on the value of problem-solving — “always hire problem-understander over the problem-solver.”

It's tied to a new service offering I've been developing. It involves a one-on-one session that identifies and deconstructs the biggest problem preventing the business from hitting its goals. But I'm not trying to solve anything in the session. I'm just getting insanely clear on the impact problem (and then I point them to a trusted expert who is in the best position to solve it).

It stems from the notion that “you don’t go to a surgeon to diagnose your health issue; you would go to the general practitioner, who will point you to the specialist to best serve you.”

Anyway, I wanted to test it. The post itself received 10x the impressions of my normal posts and 3 individuals expressed interest in participating.

Soliciting opinions first helps me gauge market interest so I don’t halo myself and waste attention and energy.

That’s it for this week. Thank you for reading.

— Peter

P.S. If you want to participate in the pilot for the “problem-understander” service i mention in #3, reply to this email with a light bulb emoji (💡). I’m experimenting with free sessions during this pilot phase, with limited availability.

I’m looking for:

• founders, ceos, and owners of small service-based companies who want to deconstruct their impact business problem

• problem-solvers (strategists, consultants, and specialists) to refer them to

Tell me what you think in just one click.