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