Land Expert Explains Why Understanding the 'Why' is Key to Avoiding Risk and Capturing Opportunities

Scott Cox shares insights on the importance of knowing the underlying reasons behind business decisions to adapt to changing circumstances.

Published on Feb. 18, 2026

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Land and capital expert Scott Cox emphasizes that many people know how to do their job, but far fewer truly understand the 'why' behind their approach. This lack of deeper understanding can lead to severe and unknown risks, as the 'right' solution may no longer work when circumstances change. Cox provides examples from the real estate industry to illustrate how missing the 'why' can cause developers to miss opportunities or stumble into failure. He argues that comprehending the underlying reasons behind decisions is crucial to repeating success and adapting to new situations.

Why it matters

Understanding the 'why' behind business decisions is essential for leaders to avoid risk, capture new opportunities, and ensure long-term success. When people only know the 'how' without the 'why', they become blind to changing market conditions and may continue down an ill-advised path simply because it's what they're accustomed to doing.

The details

Cox shares two examples to illustrate his point. In the first, a pair of young developers in Sacramento started optioning land on the outskirts of growth corridors and flipping them to builders. They became seen as visionaries, but ultimately their strategy failed during the financial crisis. Cox explains that they were simply doing what they could afford, not based on any strategic insight. In the second example, Cox discusses a conversation with a land acquisition manager at a home builder in Atlanta. The manager described a process of optioning land and then seeking approvals, without considering the option of simply buying unentitled land upfront at a discount. Cox realized the manager knew the common industry practice, but did not fully understand the underlying reasons why public builders avoid unentitled land purchases.

  • In the mid- to late 1990s, the developers in Sacramento began optioning land on the outskirts of growth corridors.
  • During the financial crisis, the developers' strategy ultimately failed.

The players

Scott Cox

A land and capital expert who emphasizes the importance of understanding the 'why' behind business decisions.

The young developers in Sacramento

A pair of developers who began optioning land on the outskirts of growth corridors and flipping them to builders, becoming seen as visionaries before their strategy failed during the financial crisis.

The land acquisition manager at the Atlanta home builder

A manager who described a process of optioning land and seeking approvals, without considering the option of simply buying unentitled land upfront at a discount.

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What they’re saying

“Many more people know how to do their job, than know why a given approach works.”

— Scott Cox, Land and capital expert (housingwire.com)

“Understanding why something works isn't just intellectual curiosity; it's the difference between repeating success and stumbling into failure, between seeing an opening and missing it entirely.”

— Scott Cox, Land and capital expert (housingwire.com)

The takeaway

Successful leaders must go beyond just knowing how to execute a strategy and deeply understand the underlying reasons and rationale behind their approach. This 'why' knowledge is essential for adapting to changing market conditions, avoiding risks, and capitalizing on new opportunities that may arise.