The Illusion of Up And To The Right

Seen from a great enough distance or over sufficient time, the trajectory of every successful organization can look like a steady climb "up and to the right." The same goes for the career path of any accomplished professional or the growth of any investment portfolio.

The general impression is that yesterday's success is compounded, which leads to greater success today and leading to even more success tomorrow. This cycle gets repeated over time, and you end up with this exponential expansion heading up and to the right into infinity.

This is an illusion. Take a closer look, and you'll see something more like this:

Every organization and every person goes through challenges. Some are minor bumps in the road, and some are dramatic and devastating turns of fortune. Those that end up continuing their upward trajectory are the ones who can identify, confront, and overcome their challenges.

Ray Dalio, one of the world’s most successful investors and entrepreneurs, likens the path to the biological process of evolution.

"Evolution is good because it is the process of adaptation that generally moves things toward improvement. All things such as products, organizations, and human capabilities evolve through time in a similar way. It is simply the process by which things either adapt and improve or die." - Ray Dalio

I like this idea because it frees me from the illusion that my life is supposed to be some flawless progression, free from challenges, setbacks, and failures. It also gives me the perspective necessary to confront the inevitable struggles of life.

We all face challenges, and the more you strive to grow, the more likely you are to face a downward turn in your trajectory. Whether you're dealing with threats to your organization or personal stumbles, the key to regaining your upward momentum is how you recognize, react, and recover from those setbacks. Here are a few tools I try to use when I find myself struggling:

• Act Early - We usually know when things aren't going our way. When a decision goes wrong, a relationship sours, or an investment fails to deliver, you must respond quickly to address the issue. Don't assume it will all work itself out.
• Ask Questions - The best way to understand what went wrong is to ask questions. If the issue is personal, you may have to confront difficult realities about your thought processes and decision-making. If it involves others, it may involve painful conversations about what you could do differently. Either way, you must assume to role of an investigator to better understand the root of the challenge.
• See Your Role - When I find myself in a difficult situation, my favorite question to ask is, "how have I been complicit in contributing to conditions I claim not to want?" By understanding your role in your struggles, you also embrace the power to change your circumstances. This is the most important factor in recovering from your setbacks.
• Ask For Help - When confronting challenges, especially personal failures, we have no way of seeing our blind spots (that's why they're called blind spots). It always helps to get input from people who can see things from a different perspective. Rely on your peers, mentors, and trusted advisors to help you identify the pieces of the puzzle that you're missing.
• Develop a Plan - Acting early doesn't mean responding rashly. Once you have identified the problem and understood your role in it, you can develop a plan to respond. Sometimes this means a course correction, and sometimes it means completely changing course. Determine where you want to go and develop a detailed plan to get there.
• Take Action - Sometimes these actions will need to be bold and audacious. More often, though, they will be small steps that lead to incremental progress. The important part is that you take the action outlined in your plan and you track your progress.