A logical error

Abraham Wald, an eminent mathematician and statistician, might seem like an unlikely hero to connect with.

I mean, I'm no mathematician, and our worlds are seemingly light-years apart.

But there's more to this story than meets the eye.

Let me explain why...

During World War II, Wald was part of the Statistical Research Group, tasked with analyzing the damage on aircraft returning from missions. The engineers at the time suggested reinforcing the areas where the planes showed the most damage, thinking it would improve their survival chances. However, Wald's genius lay in recognizing the perils of survivorship bias.

You see, the engineers were only considering the planes that returned because those were the ones they could examine.

What about the planes that never made it back? Wald questioned.

Those were the ones that faced critical damage in areas left untouched in the analysis. By focusing on the surviving planes, the engineers were inadvertently neglecting the vital areas that needed reinforcement.

Survivorship bias is a trap we all face in various aspects of life.

It's the tendency to concentrate on the success stories, the people who made it, and ignore those who didn't.

In the business world, this translates into looking only at the triumphs of successful companies while failing to see the failures that could offer valuable insights.

I'm taking a moment to celebrate Abraham Wald's legacy.

He may not have had yachts or hobnobbed with presidents, but his unconventional thinking has left a profound mark on how we perceive and analyze the world.