Luck

The fortune favors the bold, the diligent, the prepared.

What is Luck? Luck is that element of chance or fortune that's often outside your direct control. Luck is subjective, but privilege often plays a hidden role in what we perceive as good fortune. What one person considers lucky, another might not. If I say you got lucky, I look jealous. If I tell myself that I got lucky, I feel diminished. If you are like me, you might be wondering, isn’t the idea of luck in a meritocracy somewhat of a paradox? Yes it is 🫡. It reveals the inequality that characterizes our social world, a world where luck is real and consequential. To put it another way, your zip code, your parents' network, the opportunities afforded by your socioeconomic background all play a significant role in determining your 'luck.'

Many people think luck is all random, but that’s not true. While blind luck (unexpected moments that boosts you forward or knocks you off course) certainly exists, there's a whole spectrum of luck that a leader can influence. Prepared luck is about expanding your chances of good things happening by learning, building connections, and getting better e.g. musician, athlete. The more prepared you are, the more likely you are to notice and take advantage of opportunities as they arise. Manufactured luck is about making your own luck by taking calculated risks, trying new things, and encouraging creativity e.g. Mr Beast.

Luck + Skill = Power!

We've all heard stories of leaders who seem to have an uncanny knack for seizing opportunities and overcoming challenges. While chance plays a role, effective leaders actively cultivate luck and leverage it for their teams and organizations instead of just relying on fate. For example, Steve Jobs’ firing from Apple, initially seen as bad luck, ultimately led to his return and the creation of the iPod and iPhone. I encourage you to recognize luck's influence for a more honest assessment of failures. If a project doesn't go as planned, you don't dwell on it; you instead figure out what went wrong and use that knowledge to crush the next one.

Atit, this all sounds great but how can I become a “lucky leader”? Well, here is a recipe:

• First, create an environment where everyone feels empowered to take risks, explore new ideas, and challenge the status quo.

• Second, become a pro at spotting and seizing opportunities. This means being super observant, open-minded, and willing to step outside your comfort zone.

• Lastly, build resilience. Setbacks are a part of life, so develop the mental toughness to handle unpredictable situations.

I’d leave you all with this - Examine the tendency to overestimate the role of skill in success (individual agency) and underestimate the influence of external factors (unpredictable world) aka Attribution Bias. This will bring you a more balanced perspective, encourage humility and empathy and facilitate better decision-making.

Morgan Housel once said - a better way to frame luck is by asking: what isn’t repeatable? And maybe better yet: The way to get 🍀 is to find what’s repeatable.

1 Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. He is also a New York Times Bestselling author of The Psychology of Money and Same As Ever.