Article (July-2020)

Articles

The Paretto Monster

Adil Malia

Designation : -   Chief Executive

Organization : -  The FiRM, Mumbai

01-Jul-2020

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Contemporary leadership reflects a strong tendency to be self-possessed by the 'Paretto Monster'. We tend to get possessed by whatever we experience to be our biggest immediate problem at hand. Y2K, SARS, EBOLA, Demonitisation, Bank Collapse etc are such examples.

We lose our total balance and apportion disproportionate resources, time and attention to handle that problem and insulate our risks, out of fear for its impact. In the process we miss out the infant black swans breeding in some remote corners that may someday grow up and be far bigger paradigm redefining events than what we believed.

The big problem - I call it the 'Paretto Monster', causes 80% of the damage. But the bigger problem on hand is its capacity to blind us and block us from evaluating other problems which may momentarily appear to be rather small albeit they may have the potential to cause huge damages.

These deceivingly small problems, subsequently grow up to cause unmeasured damages to the status-quo as they surface subsequently, in the form of large black swan events.

Leadership is not only untrained to notice & identify these infant black-swan events but is also not effective in handing the subsequent destruction caused by these paradigm destroying elements.

And that is what going to define successful leadership in the future - which can be best explained by labeling it as an 'Era of Black Swan Events'.

The Inspirational new age leaders will need different skill-sets. The six top would according to me be:

a. Data Analytics to derive real insights.

b. Ability to see the hidden patterns, recognise patterns and pictures in a crowd of data and hear music in rush & pandemonium.

c. Strategise - 'Think fast slowly' and build people to business connections.

d. Provide the technological edge to the new value chain.

e. Motivate, engagements & build carriers

f. Create happy environment for all stake holders and create 'Value' flourish for theenterprise through talent assets.

The Paretto Monster will always be in a dual with new realities once the post Covid worldresurrects itself. 60 % of the world will have new designs. 40% will be extensions of the old patterns. Try not to liquate that 60%. Try to enhance that slowly over time.

But if you had sincerely only one thing which you could avoid, I would say do not try to enhance that 40 %. This 40% has to die.

Let new realities win. Kill the Paretto Monster !!!