Leading with confidence and paranoia

A few years back, David C. Baker conducted a thorough business review for Door No. 3, and one thing he said to me has resonated ever since.

First off, some context. David is a leading advisor for creative and digital firms like ours. He consults for agencies around the world, and in this instance he was dropping into Austin to benchmark our company's performance.

He tapped his dry erase marker on the table a few times, looked at me and said,

"Prentice, you run this agency with a healthy mix of paranoia and confidence. And it has served you well.”

Admittedly, I paused. Was this really a good thing? Or a backhanded compliment, David????

I’ve come to understand his POV—and realize it’s a great thing. Here’s why.?

Effective leadership begins with unwavering confidence—not just in ourselves but in our collective abilities. Confidence empowers us to make hard decisions, pursue big ideas, and tackle challenges head-on.

In this context, paranoia is about vigilance and foresight. I often say that a big part of my job is to mitigate risk. And to do so effectively means leaders need to peel off from the crowd at times to proactively peer around corners.?

Here's why this balance works:

Agility: A blend of confidence and vigilance fosters agility. We can explore new territories and still pivot quickly when needed.

Resilience: In the advertising industry, resilience is everything. A balanced mindset helps us bounce back from setbacks and navigate uncertainties.

Continuous Improvement: Confidence propels us forward, while healthy paranoia drives constant improvement.

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Parting words: Confidence without a dose of paranoia is ignorant. And paranoia without confidence is stifling. The challenge comes in granting them both a seat at the table without either one dominating the dinner conversation.

I encourage you to pair them up and let them spend some time together. I have no doubt they'll come to develop a healthy, happy coexistence that will serve you well.