Episode Summary
Chris Sterle, Founder and CEO of Acoustic Design Systems, joins The Flywheel Effect to share his unconventional journey to success. Chris openly discusses his early career struggles, marked by a “that’s not my problem” attitude and a resistance to authority. After facing the harsh realities of the 2008 recession, Chris realized the importance of building a company culture that values its employees.
Chris prioritized creating detailed processes for every aspect of his business, empowering his team to contribute and take ownership. He emphasizes that documenting these processes is crucial, even for smaller companies, as it creates a roadmap for success and allows for easier delegation and growth.
He further solidified this cultural shift by forming an internal advisory board comprised of employees from all levels. This board ensures every team member has a voice, fosters transparency, and generates invaluable feedback that Chris uses to enact meaningful change within Acoustic Design Systems.
Featured Guest
Name: Chris Sterle
What they do: Founder & CEO
Company: Acoustic Design Systems
Noteworthy: Chris went from being unemployable to building a $10M integration business with heart.
Key Insights
True Leadership Means Putting Your People First
Chris’s journey underscores a powerful leadership lesson: shifting your mindset from “employees work for me” to “I work for my employees” can unlock tremendous growth. When you prioritize the well-being and success of your team, fostering a culture of transparency and trust, they become more engaged, invested, and ultimately, more productive. This shift requires vulnerability, empathy, and a willingness to listen actively to your team’s needs and ideas.
Systematize Your Business, Even When You Think You’re Too Small
Documenting processes is not just for large corporations. Creating clear, detailed procedures for every aspect of your business, even in the early stages, provides a foundation for scalability and frees you from micromanagement. By involving your team in this process, you empower them to take ownership and ensure the systems truly work for everyone.
Embrace Discomfort as a Catalyst for Growth
Both Chris and Matt emphasize the importance of leaning into discomfort to achieve meaningful progress. Whether it’s facing tough financial decisions, challenging your own leadership style, or dedicating time to systemization, stepping outside your comfort zone is often the key to unlocking new levels of success and personal fulfillment.
Episode Highlights
Navigating the 2008 Recession: A Turning Point
Timestamp: [00:12:00] – [00:17:00]
Chris reflects on how the 2008 recession forced him to confront his irresponsible spending habits and lack of business acumen. He made the difficult decision to prioritize his employees’ livelihoods, even at the expense of his own financial security. This experience served as a turning point, leading him to re-evaluate his priorities and focus on building a more sustainable and responsible business model.
“I paid every vendor, I paid all of my guys every dollar out of my pocket. My home ended up being foreclosed on in 2011. I’m an open book; I’m not ashamed. I think that all of that makes me who I am today and learning all of those hard lessons was very important to me.”
Finding Your Niche: Serving the Underserved Market
Timestamp: [00:18:00] – [0:21:00]
Chris discusses how Acoustic Design Systems broke away from the traditional custom integration model by focusing on the “luxury production” market. By partnering with builders like Toll Brothers, they found a niche with a higher volume of projects and a more streamlined process. This strategic decision allowed them to achieve rapid growth and profitability while still delivering high-quality installations.
“We decided that we’re going to go for the luxury production market. So as we started with Toll Brothers, for instance, because that was the luxury production home builder in Las Vegas and we asked them to give us a chance on one community.”
The Power of Process: Creating a Roadmap for Success
Timestamp: [00:46:00] – [00:49:00]
Chris emphasizes the importance of documenting processes, even for smaller companies. By creating detailed procedures for every aspect of the business, he argues that you set clear expectations, empower employees, and create a framework for consistent results. While the initial effort can be challenging, the long-term benefits, in terms of efficiency, accountability, and scalability, are significant.
“I should have done this the day I started in business and defined who I wanted to be. And even if it was me doing a hundred jobs, it should be documented from day one. So I know what you’re asking me should I have started this sooner? When I didn’t have the bandwidth. I think if you’re not creating the bandwidth to make this important — it’s literally the most important thing you can do.”
The Importance of Transparency: Sharing Information Builds Trust
Timestamp: [00:57:00] – [1:01:00]
Chris advocates for transparency in leadership, believing that open communication builds trust and reduces anxiety among employees. He shares how Acoustic Design Systems adopted an open-book approach, providing team members with insights into financial performance and company goals. This transparency fosters a sense of ownership and encourages employees to think more strategically about their roles within the organization.
“I think the biggest problem human beings have in general, not really a problem, but we have very good memories and very good imaginations. So we remember all of the bad shit that’s happened, and we imagine ways that it could be way worse than that. So having that direct connection with them to tell them the truth really helps. “
