The Invisible Gorilla: The Human Cost of Correlation

Moving from Relative Wins to Absolute Reality

Let’s run a 2-hour diagnostic workshop. It’s a leadership exercise. Our subject: Paul Smith, a top-quartile brand, loved by a global following and loyal customers, with exceptional creative consistency.

The class assignment:

Deconstruct the public data and find the “irrefutable facts” you’d bring to the boardroom.

Here’s what the class finds:

  1. Fact 1 (The Acute): The principal trading company, Paul Smith Limited (PSL), reported an operating loss of £14.26 million in 2024.

  2. Fact 2 (The Chronic): Public filings show PSL’s total consolidated profit over the last 20 years (2005-2024) is a negative £11.25 million.

Critical thinking:

Discuss how a top-quartile “Loved Brand” and “Net Loss” can coexist for two decades.

The discussion isolates the most expensive trap in modern business: Mistaking Relative “Wins” for Absolute Progress (Correlation ≠ Causation).

This is the Relative Risk Reduction (RRR) trap. Leadership, sold “solutions” that “improve a symptom by 20%” (Relative Win), ends up just masking the symptoms. The long shadows cast by the real causes—the invisible “emotional” frictions—remain absolute:

  • “Consistently atrocious” in-store service

  • An “expensive suitcase fail[ing] after one flight”

  • A “30-day refund delay”

The Organisational CT Scan locates the “Root Cause Contagions”. The Small-World Network graph maps how they flow into the Absolute Reality—the £14.26 million 2024 operating loss. These methods further reveal how these masked symptoms, amassed over 20 years, result in Fact 2: a consolidated net loss of £11.25 million.

This is the “holy grail”: It shows causation.

The workshop notes (The Alpha Key™ Report) serve as a blueprint. It traces a single “gut feeling” (like “Staff on their mobiles”) to its exact weighted financial impact: a £4.45 million brand loss—a powerful driver of the 2024 operating loss.

PSL’s 20-year accumulated loss is the Absolute financial price of operating on “correlation” (opinions, guesswork).

It’s the infamous invisible gorilla. Sustained inattentional blindness. It’s an innate human-born blind spot—and a costly vulnerability.

Virtually anything that has an effect can be observed, and its impact understood, even if not with old rulers.
— Morten J. Sørensen

It opens the dialogue: If the “solutions” are merely masks, which current projects need to be stopped? The resource savings alone could fund the Absolute Wins.

The antidote:

Don’t chase shadows. Find the breadcrumbs.

The report further outlines a path to salvage an additional £6.55 million, directly slashing the £14.26 million operating loss by over 75% to book a £22.32 million increase in group Enterprise Value.

It’s no longer theoretical. It’s verifiable alpha, commercially validated with a 10X ROI Guarantee.

The workshop ends.

Now, ask yourself: What would your 2-hour workshop reveal about your company?

MORTEN J. SØRENSEN

Morten J. Sørensen is the Strategic Bloodhound, dedicated to illuminating the unseen and unlocking profound value where others don't. As the author of Who Moved My Customers?, he champions a revolutionary diagnostic approach, including the Organisational CT Scan and Asset Efficiency Score (AES), to expose hidden inefficiencies and transform customer disconnects into verifiable growth. His work empowers leaders and investors to see beyond surface metrics and cultivate genuine organisational well-being. He always stays curious and dares to look where others don't.

https://www.mortenjsorensen.com
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Root Cause Contagion: How Small Failures Drive Systemic Decay Within Organisations