In the world of business, due diligence is a crucial process that investors rely on to evaluate a company’s potential. While analyzing financial statements and crunching numbers is essential, it’s equally important to question senior executives and employees to ensure they are truthful about the business model. To learn more about this topic, we interviewed Phil ‘Dick’ Houston, a former CIA officer known for his ability to detect lies.
Houston has worked closely with entrepreneur Brad Jacobs on due diligence for both senior hires and investments. He shared his strategies for identifying deceptive behavior and how it can be applied in the corporate world. One of the key insights from the podcast was learning what signs to look for when detecting deception. Houston dispelled myths about eye contact and explained the psychological buckets used to understand deception.
Another important aspect of lie detection is creating an ideal environment for questioning individuals effectively. Houston discussed how verbal and physical cues can be used to encourage honesty in others. He also provided a real-time example of lie detection and explained how to ask the questions that most people fail to ask.
Overall, Houston’s expertise in spotting lies can be valuable in due diligence processes for investors and companies alike. By being aware of the signs of deception and knowing how to question individuals effectively, business professionals can make more informed decisions and mitigate risks.